KUALA LUMPUR (May 29): Kenanga Investment Bank Bhd has received approval from Bank Negara Malaysia (BNM) for its asset management subsidiary Kenanga Investors Bhd (KIB) to acquire 100% equity stake in Libra Invest Bhd, the fund management arm of ECM Libra Financial Group Bhd.

"The green light is subject to KIB obtaining the necessary approval from the Securities Commission Malaysia," Kenanga Investment Bank said in a statement.

KIB announced the acquisition for a provisional purchase consideration of RM50.1 million on March 28, under the terms of a conditional share purchase agreement inked. The acquisition is targeted to be completed by the third quarter of this year.

The final purchase consideration will be based on the net asset value of Libra Invest on the last day of the month preceding completion date and a premium of RM35 million.

"We are very pleased with this milestone. This complementary strategic acquisition is expected to propel KIB's asset under management over the RM10 billion mark, enhancing its position as one of Malaysia's leading unit trust and asset management companies," said bank's group managing director Datuk Chay Wai Leong.

"Both our organisations share an aligned commitment towards investment excellence and client service, which will serve as a strong foundation for seamless integration.

"Through this, we will boost product line-up, diversify asset base and enhance overall investment capabilities, with the intent of driving better investment outcome for our fast growing and discerning client base," said KIB executive director and chief executive officer Ismitz Matthew De Alwis.

Established in 1995, Libra Invest is an award-winning asset management company with a stronghold in the fixed income space, the statement read.

KIB expects the Libra Invest's experience in this area will complement its successful equity product line-up, representing a substantial expansion of its investment offerings and expertise.

KIB itself provides investment solutions ranging from collective investment schemes, portfolio management services, ETFs, financial planning and alternative investments for retail, high net worth clients, corporate and institutional clients.

Kenanga Investment Bank shares were traded at 56 sen at 10.50am today, giving it a market capitalisation of RM394.76 million.

ECM Libra shares, meanwhile, were untraded today. The counter last traded at 25 sen on May 28, which gave it a market value of RM117.58 million.