Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

Strategic Investment:
K&N Kenanga Holdings Berhad
Financial Services
With a 25% equity stake, CMS is the single largest shareholder of
K&N Kenanga Holdings Berhad (K&N), an established fi nancial
group involved in equity broking, investment banking, futures
broking, treasury, specialised fi nance and fund management in
Malaysia with a history of close to 40 years. Listed on the Main
Market of Bursa Malaysia Securities, its group of companies includes
Kenanga Investment Bank Berhad, Kenanga Deutsche Futures Sdn
Bhd, Kenanga Capital Sdn Bhd and Kenanga Investors Berhad.
For the year ended 31 December 2011, K&N recorded a PBT of RM14.87 million from continuing
operations, as compared to a loss of RM50.63 million from continuing operations in year ended 31
December 2010.
This signifi cant turnaround arose following the installation during 2011 of a new management team,
who revamped the business and changed its focus into more profi table areas as well as from the
recovery of long outstanding debts.
During the year, the Investment Banking unit was involved in several major deals including:
• The SapuraCrest - Kencana RM11.85 billion merger and acquisition deal;
• Bumi Armada Berhad Initial Public Offering;
• Sarawak Energy Berhad Sukuk issuance of RM2.5 billion under the existing RM15 billion
programme;
• RM480 million takeover offer of Leader Universal Berhad from HNG Capital Sdn Bhd;
• RM450 million acquisition of Pacifi cMas Berhad by OCBC Capital (Malaysia) Sdn Bhd, a whollyowned
subsidiary of Oversea-Chinese Banking Corporation Limited; and
• Kulim (Malaysia) Berhad takeover of Sindora Berhad.
Meanwhile, the Treasury unit was more active generating new revenue streams which have resulted in
a signifi cant improvement in this unit’s profi ts.
K&N’s Equity Broking unit has also shown an encouraging upward trend in its Malaysian equities
trading market share in the second half of 2011 after declining in recent years.
Kenanga Investors was awarded The Edge-Lipper Malaysia Fund Awards for its Kenanga Syariah
Growth Fund (both 3 years and 5 years) under the Equity Malaysia Islamic category. Meanwhile, its
Kenanga Growth Fund garnered the 2012 Morningstar Awards for the Best Malaysia Equity Fund
category. The awards were based on the funds’ performances in 2011.
For the ninth consecutive year, Kenanga Deutsche Futures clinched the “Top Overall Futures Broker
Award” and “Top Equity Futures Broker Award”. It also came in second for Crude Palm Oil Futures in
2011. These awards were based on its volume contribution to the industry.
Annual Report 2011 35