KUALA LUMPUR (Dec 14):  Apex Equity Holdings Bhd said Kenanga Growth Fund has ceased to be a substantial shareholder in ACE Credit (M) Sdn Bhd after it disposed of its entire 12.31% in the stockbroking group.

The stake, comprising 24.95 million shares, were sold on Dec 9, the same day on which ACE Credit (M) Sdn Bhd, which is part of the ACE Group, had sold  27.04 million shares, or a 13.34% stake, in Apex.

Apex Equity announced Kenanga Growth Fund's exit from the group in a Bursa Malaysia filing on Wednesday (Dec 14). The selldown by ACE was announced on Tuesday.

ACE, which was previously the second biggest shareholder in Apex with a 14.98% stake, now owns just 1.64% of the stockbroking group.

On Dec 1, Apex Equity announced that the Securities Commission Malaysia is seeking a court declaration that its wholly-owned subsidiary Apex Securities Sdn Bhd had contravened securities laws, and that ACE had knowingly been involved in the contravention.

The regulator claimed that Apex Securities contravened the securities laws “as ACE has become a controller of Apex Securities, when ACE is not a fit and proper person” to do so.

Apex Equity’s remaining substantial shareholders include Fun Sheung Development Ltd with a 15.78% stake, Concrete Parade Sdn Bhd (8.68%) and Yenson Investments Limited (5.18%).

Two other Kenanga funds — Kenanga Growth Opportunities Fund and Kenanga BondEXTRA — are also among the top 30 shareholders of Apex Equity. These two funds combined hold a 4.99% stake in the stockbroking group. All three funds are managed by Kenanga Investors Bhd, a wholly-owned subsidiary of Kenanga Investment Bank Bhd.

Apex Equity's share price closed one sen or 0.8% higher at RM1.22 on Wednesday, giving it a market capitalisation of  RM247.2 million. The counter has risen 17% over the last five trading days and by 22% over the past 30 days.