KUALA LUMPUR (June 25): Kenanga Investment Bank Bhd (KL:KENANGA) said on Tuesday it had received approval from Malaysia’s central bank to raise its stake by 15.2% in Merchantrade Asia Sdn Bhd, the country’s largest money services business operator.
Upon completion of the acquisition, Kenanga’s aggregated equity holding in Merchantrade will increase to 19.94% from 4.74%, making it the second largest shareholder — after managing director and founder Ramasamy K Veeran — the company said in a statement. Financial details of the deal were not disclosed.
“The increased equity interest in Merchantrade reflects Kenanga’s commitment to deepening its relationship with the company, and underscores the group’s dedication to fostering partnerships within the financial ecosystem, with the aim to explore synergies and expand innovative offerings,” Kenanga said.
Merchantrade provides international money transfers and currency exchange out of 94 branches and over 400 agent locations in duty-free zones, travel agents, luxury hotels and major shopping malls, according to its website. The company also provides digital payment services and travel insurance.
Kenanga had previously partnered Merchantrade in 2020 to explore digital opportunities, which led to the introduction of Malaysia’s first stockbroker e-wallet known as Kenanga Money.
“Together, we are poised to accelerate our collective efforts in delivering innovative solutions and enhancing the digital experience for our customers,” said Kenanga managing director Datuk Chay Wai Leong.
For Merchantrade, “we are excited about Kenanga’s increased equity interest in Merchantrade, which further solidifies the synergies between both companies”, said Ramasamy in the same statement. “With this new development, we eagerly anticipate the next phase of our journey.”