CMS to sell CMS Trust Management to K&N Kenanga

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Monday, 14 December 2009, Kuala Lumpur – Cahya Mata Sarawak Berhad today announced that it will be selling its unit trust fund management subsidiary, CMS Trust Management Berhad, to Kenanga Investment Bank Berhad (KIBB), a subsidiary of K&N Kenanga Holdings Berhad. The Share Sale Agreement (SSA) for KIBB to acquire 100% interest in CMS Trust Management from owners CMS Capital Sdn Bhd and AGI Asset Management Ltd was sealed today. The disposal of 6,765,300 ordinary shares of RM1.00 each, representing the entire equity interest in CMS Trust Management Berhad, is for a total cash consideration of RM 23 million.

Completion of the Share Sale Agreement is subject to consents and approvals being obtained from shareholders and the authorities as well as completion of a due diligence exercise. The entire disposal process is expected to be completed within 6 months from now.

According to CMS Group Managing Director, Dato’ Richard Curtis, “We view the sale of CMS Trust to K&N Kenanga Holdings not so much as a sale but more of a re-alignment of CMS’ financial services business under the umbrella of K&N Kenanga Holdings, of which, CMS is the largest shareholder. This move will facilitate the growth of the business for both Kenanga and CMS Trust.”

The divestment will also enable CMS Group to focus on its core businesses, going forward, of construction materials manufacturing and trading, construction, property development and aluminium smelting. For KIBB, 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 KIBB’s future growth.

CMS Trust Management Berhad, established in 1995, has its principal business operations located in Kuala Lumpur. Offices in Kuching and Kota Kinabalu further service its unit-holders nationwide. CMS Trust currently manages 9 funds and has been a consistent winner of local unit trust awards, a recognition of its superior funds’ performance. CMS Trust also provides asset management expertise and currently manages RM 1.83 billion worth of assets.