Kenanga Completes Acquisition of CMS Trust Management

Kuala Lumpur, Friday, 9 April 2010 – K & N Kenanga Holdings Berhad (Kenanga) announced today that its subsidiary, Kenanga Investment Bank Berhad (KIBB), has completed the 100% acquisition of CMS Trust Management Berhad (CMS Trust) for a total sum of RM23 million cash.

The acquisition will strengthen Kenanga’s position as a leading independent financial group and enlarge its footprint in East Malaysia. CMS Trust has offices in Kuala Lumpur, Kuching and Kota Kinabalu, and currently manages nine unit trust funds. It has been a consistent winner of local unit trust awards in recognition of its superior funds’ performance.

“Part of Kenanga’s growth and transformation plan is to ensure that we underpin our position as an independent financial house with a broad range of financial services. This acquisition will position Kenanga for future growth as we merge the assets, offerings, talent, expertise and network of both institutions. Our ultimate goal is for our customers to enjoy improved service and returns on their portfolio; we intend to do this by widening our presence and offering innovative financial services,” said Tengku Zafrul Aziz, Group Director of K & N Kenanga Holdings Berhad.

“With CMS Trust’s strong presence in East Malaysia, we will be able to leverage on their network of clients to make our presence stronger. We believe the combination of the synergy between CMS Trust and Kenanga Fund Management will enable us to create a symbiotic knowledge sharing relationship to benefit our customers.”

Immediately moving forward, Kenanga will be consolidating CMS Trust’s asset management expertise into the Group’s overall financial service offerings. CMS Trust also currently manages RM1.83 billion worth of assets.

The merger between CMS Trust and Kenanga Fund Management is expected to accelerate Kenanga Group’s growth especially in their assets under management (AUM) segment.

CMS Trust Chairman, Datuk Syed Ahmad Alwee Alsree, says “Unit-holders of CMS Trust’s various funds should rest assured that their investments remain in good hands. With over 30 years of experience in the financial industry, the merging of CMS Trust with Kenanga Fund Management under the umbrella of the larger Kenanga financial group will create a powerful synergy for better service to unit-holders and stronger investment expertise.”

The divestment of CMS Trust to Kenanga will also enable CMS Group to focus on its core businesses of construction materials manufacturing and trading, construction, property development and aluminium smelting. For Kenanga, the acquisition of CMS Trust will enable it to combine its own asset management and unit trust fund businesses with that of CMS Trust’s in order to create a stronger platform for its future growth.

“Kenanga is looking forward to offering full investment banking services on products to a broader scope of clientele, in particular for the unit trust segment,” Tengku Zafrul added.

CMS Trust Management Berhad was established in 1995 and was a subsidiary of Cahya Mata Sarawak Berhad (CMSB).