KUALA LUMPUR (July 28): K & N Kenanga Holdings Bhd announced today that it has received approval from shareholders to begin a corporate exercise that will merge and transfer its listing status to Kenanga Investment Bank Bhd (KIBB).

In a statement today, K & N Kenanga said the merger will see the transfer of its listing status on the Main Market of Bursa Malaysia, as well as its identified assets and liabilities to KIBB.

The exercise is expected to be completed by the end of this year.

"The new Kenanga Group structure will be leaner resulting in more simplified and efficient organisation. Greater cost saving and tax efficiency are also expected as a result of the restructuring," the statement read.

K & N Kenanga managing director Datuk Chay Wai Leong said the exercise shows the management's commitment to deliver long-term shareholder value and sustainable growth, and this restructuring will enable KIBB to manage the group's resources more efficiently and spearhead its future growth.

KIBB is the largest independent investment bank by equity trading volume and value, as well as one of the top three brokerage houses with the biggest network of remisiers in the country.

In the last 18 months, KIBB has announced key collaborations with leading international institutions through business cooperation agreements respectively with Tokai Tokyo Financial Holdings Inc, one of Japan's leading investment banking groups, and Yue Xiu Securities Holdings Ltd, an entity that is part of the wider Yue Xiu Group, one of the largest state-owned enterprise groups in Guangzhou, China.

More recently KIBB has also entered into a joint venture agreement with Tokyo-based Rakuten Securities Inc.

K & N Kenanga fell half sen or 1.01% to 49 sen today, giving it a market capitalisation of RM354.05 million.