What’s Up? … dated April 2011
Sources say ECM and K& Kenanga Holdings Bhd are believed to be exploring a potential merger.
It is learnt that the parties related to the shareholders of both entities have explored the possibility of ECM’s shareholders selling out to Kenanga.
If the deal takes place, the combined entity will be able to free up rm500 million in cash. At present, both of them have to keep rm500 million cash deposits separately with BNM which comes to rm1 billion.
Tan Sri Azman Hashim is the single largest shareholder of ECM with 23.5% stake. He has been looking to exit the investment bank as he also controls AmBAnk Corp. Co founder Lim Kiann Onn and Datuk Seri Kalimullah own 9.48% and 3.97% are also said to be open to selling their stakes.
As for Kenanga, its largest shareholder is CMSB which is said to be keen on driving Kenanga. CMSB has a 25.07% stake in Kenanga and is sitting on a huge cash pile after its completion of the sale of its interest in UBG Group. Deutsche Asia Pacific Holdings Ptd Ltd held a 16.55% stake as at March 31, 2010.
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