Kenanga links up with Tokai Tokyo for strategic alliance

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KUALA LUMPUR: K & N Kenanga Holdings Bhd (Kenanga Group) has inked a business cooperation agreement with Tokai Tokyo Financial Holdings Inc to form a strategic alliance to explore business opportunities between the two investment banking groups.

In a statement yesterday, Kenanga Group (fundamental: 1.8; valuation:1.65) said the strategic alliance will enable the parties to foster a symbiotic relationship in areas involving investment banking and the securities business.

The cooperation is a non-exclusive agreement for an initial term of one year from the date of the agreement, and will be automatically renewed each year unless either party decides otherwise and notifies the other in writing.

The agreement will enable the parties to explore collaborations on mutually supplying products and services under the securities business in Japan and Malaysia, mutually furnishing information about the economy and the corporations in the two countries, and helping one another’s clients to fulfil their business needs by arranging on-site visits and meetings.

It will also allow them to look at mutually creating cooperative arrangements concerning potential investment banking business opportunities such as mergers and acquisitions (M&A) advisory and initial public offerings, as well as sending trainees to one another.

“We are pleased to be Tokai Tokyo Financial’s partner of choice in Malaysia. The similarities between our business models — equity broking at the core, retail based, high-touch approach — will serve as a solid foundation for this relationship,” said Kenanga Group managing director Datuk Chay Wai Leong.

“We look forward to the sharing of ideas and experiences, as well as the expansion of new offerings to our customers,” he added.

Meanwhile, Tokai Tokyo Financial president and chief executive officer Tateaki Ishida said the group is determined to meet the growing needs of its customers and make the most of the business cooperation with Kenanga. 

Tokai Tokyo Financial Holdings Inc is the holding company of the Tokai Tokyo Financial Group, with Tokai Tokyo Securities Co Ltd as an operating nucleus. 

“We believe that the Kenanga Group is the ideal alliance to further affirm our group’s efforts to become a leading player in Asia,” he added. 

According to him, the first step the group takes towards that is assisting its customers with their investment activities by enriching information gathering and research capability on Malaysian equities.

“We will also continue to explore other mutually suitable activities with the Kenanga Group that might be beneficial to our customers,” he said. 

Shares in Kenanga Group closed unchanged at 60.5 sen yesterday, giving it a market capitalisation of RM442.71 million.


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This article first appeared in The Edge Financial Daily, on April 10, 2015.