KUALA LUMPUR: Since early this year, shares in merchant banking outfit K&N Kenanga Holdings Bhd have seen relatively higher trading volume, which in turn nudged the stock to its 52-week high of RM1 on Feb 5.

Yesterday, Kenanga’s stock slipped 5.5 sen to close at 92 sen, with almost 1.8 million shares changing hands. Trading volume last Friday breached the 5.5 million mark with the share price closing at the day’s high of 97.5 sen.

In the latest development, Tan Sri Syed Mohd Yusof Tun Syed Nasir last week ceased to be a substantial shareholder in K&N Kenanga, after he disposed of 21 million shares or 3.4% of Kenanga in a direct deal on Feb 2.

There were also several large blocks of Kenanga shares crossing in off- market transactions in the last couple of weeks. Some 40 million shares or 6.5% of Kenanga’s shares crossed on Jan 29 and on Feb 2, at 80 sen a share or for a total of RM32 million.

It is not known who the sellers were, but the initial indication is that the shares transacted could have been part of Syed Mohd Yusof’s block of 8.2% equity interest.

Who acquired those shares remains to be seen.

According to the company’s latest annual report, the substantial shareholders are Cahya Mata Sarawak Bhd, which controls 25.1%, Deutsche Asia Pacific Holdings Pte Ltd 16.5%, Tengku Datuk Noor Zakiah Tengku Ismail 16.5% and Syed Mohd Yusof who had 8.2% then.

Syed Mohd Yusof first emerged in Kenaga on Feb 19 last year when he acquired 50 million shares or almost 8.2% via an off-market married deal.    

Prior to Kenanga, Syed Mohd Yusof and the Sultan of Selangor, Sultan Sharafuddin Idris Shah, controlled about 23% of Southern Bank Bhd via their vehicles Killinghall (M) Bhd and Ramada Bhd.

The duo subsequently exited, selling their stakes to Bumiputra-Commerce Holdings Bhd, which took over the reins of Southern Bank, despite resistance by the management and other substantial shareholders, headed by Tan Sri Tan Teong Hean.   

Late last month, Tengku Noor Zakiah Tengku Ismail, who is one of the founders of Kenaga, relinquished her executive position, opting for non-executive chairman’s post.


This article appeared in The Edge Financial Daily, February 9, 2010.