PETALING JAYA: Kenanga Investment Bank Bhd (Kenanga IB) has been given the nod by Bank Negara Malaysia (BNM) to commence negotiations in relation to the acquisition of the stockbroking business of Inter-Pacific Securities Sdn Bhd (Interpac).
Interpac is an indirect subsidiary of Berjaya Capital Bhd, which in turn is part of Berjaya Corp Bhd. Established in 1972, Interpac has five branches across Kuala Lumpur, Penang and Johor Baru with a paid-up capital of RM250 million.
Kenanga IB said in a stock exchange filing that BNM had stated via a letter dated May 16 that it has no objection for Kenanga to commence negotiations with Interpac for the acquisition of the stockbroking business as well as its related assets, liabilities and contractual arrangements.
Kenanga IB managing director Datuk Chay Wai Leong said the group is looking forward towards a smooth and fruitful negotiation process and aims to conclude the acquisition within the next six months.
“The potential acquisition will further strengthen Kenanga’s leading position in the retail broking space to become the top two largest stock broker in Malaysia, with a combined market share of over 10% and retail market share of about 25%,” he added.
Kenanga IB operates through 32 branches nationwide and boasts the largest remisier network in the country.
On Bursa Malaysia today, Kenanga IB fell 0.78% to 63.5 sen on volume of 487,600 shares.
Source: The Sun Daily