Merge futures & stockbroking businesses with K&N Kenanga Holdings Bhd
On 26 December 2000, CMS Capital Sdn Bhd entered into an exchange agreement with Peninsular Malaysia-based stockbroker K&N Kenanga Holdings Berhad to transfer CMS’ securities and futures business to K&N Kenanga in return for shares in K&N Kenanga.
CMS’ subsidiaries Sarawak Securities Sdn Bhd and Sarawak Securities Futures Sdn Bhd were sold to K&N Kenanga in August 2001. The merger enabled the latter to achieve Universal Broker status in line with the government’s call for consolidation of the country’s stockbroking industry.
The merger resulted in CMS, through CMS Capital Sdn Bhd, holding just over 25% in the enlarged K&N Kenanga – one of the largest retail-based stockbroking companies in Malaysia – and becoming the single largest shareholder. CMS continues to hold this stake as one of its strategic investments.
