Posted by chong > 2012-06-14 01:01 | Report Abuse

Friends please read this headline appearing on The Star on 12th June 2012


Tuesday June 12, 2012
Final terms for ECM-K&N RM890mil merger pact likely to be set this week

...now read this

K&N Kenanga, a Kuala Lumpur-based brokerage backed by Deutsche Bank AG, would pay in cash and shares and the final terms would be set this week, said the people, who declined to be named as the information is private.

....it plainly said "final terms would be set this week"


As always I leave you all to decide, the decision is always yours.....whether to stay & hopefully for the announcement soon preferable this week or chabut & make some profits. For me I will stay to see the real BIG GAIN after having average down & bought plenty when it was 77 cents from 82 cents.....take it from me that Ambank chief Azman will not sell cheap when it's NTA is $1.23 cents.

Cheers.

Posted by hw0706 > 2012-06-14 10:13 | Report Abuse

Yeap same view with you.

Posted by usry > 2012-06-14 10:55 | Report Abuse

that news was factored in share price already.. unless they have SPECIAL agreement..

Posted by istyletech > 2012-06-14 16:25 | Report Abuse

90 cts?? lol hardly

Posted by JimYeoh > 2012-06-14 16:32 | Report Abuse

close 0.87 today?

Posted by hw0706 > 2012-06-14 16:42 | Report Abuse

anyway tan sri will not sell it cheap.

Posted by istyletech > 2012-06-14 16:49 | Report Abuse

can see that 1 lot guy =)

Posted by chong > 2012-06-14 17:24 | Report Abuse

Good ending despite a bad market, hee, hee, hee

Posted by nubhan > 2012-06-14 17:31 | Report Abuse

damned ! he he he

Posted by usry > 2012-06-14 17:33 | Report Abuse

wrong judgement..by the way tomorrow still have a chance.. if not tomorrow, next week still got a chance..

Posted by chong > 2012-06-14 17:42 | Report Abuse

Yahoooooooooooooo....now see this....


2143 ECM ECM LIBRA FINANCIAL GRP BHD
ECM-Request For Suspension

LISTING'S CIRCULAR NO. L/Q : 65198 OF 2012
Kindly be advised that at the request of the above Company, trading in its
shares will be suspended with effect from 9.00 a.m., Friday, 15 June 2012
pending a material announcement.
Sr. Mgr. Issuers, Listing Div.


14/06/2012 05:36 PM


Ref Code: 20120614LC00153

Posted by chong > 2012-06-14 18:24 | Report Abuse

Let's hope tomorrow morning both ECM & Kenanga will announced the merger price for ECM shares following the suspension...I take it to be around $1.10 to $1.20....anything higher than this will be a bonus.

Cheers.

Posted by Jjtrader > 2012-06-14 18:59 | Report Abuse

At last, my 200 lots hopefully will reward me handsomely after looooooooong time of waiting.

Posted by hw0706 > 2012-06-14 19:12 | Report Abuse

at least 60sen cash is there.

Posted by astrowoon > 2012-06-14 20:39 | Report Abuse

bro chong, could u explain what happens after the merger? is it they will buy back our shares with the merger price or there will be a new counter comprising both KN/ECM with a new share price?

Posted by michaelyong > 2012-06-14 21:23 | Report Abuse

hope is good news and price?

Posted by michaelyong > 2012-06-14 21:24 | Report Abuse

god bless.

Posted by JimYeoh > 2012-06-14 21:47 | Report Abuse

cheers all the way..

Posted by chong > 2012-06-15 00:18 | Report Abuse

Brother astrowoon , most probably ECM be delisted after the merger with Kenanga listed & traded only. Yes, they will exchange our ECM shares with at least 60 cents cash & the rest most probable in Kenanga shares & the added option of Loan stocks .....whether Kenanga will maintain the name Kenanga ECM Berhad is left to be seen....maybe they will change the nae Kenanga to Kenanga ECM because of marketing reasons.

Cheers everyone & let's hope come today they will announce a merger price of $1.20 and above, perhaps $1.722 cents taking into account of ECM net worth, hee, hee, hee.....then we all can eat abalone wash down with champagne.

Posted by damonjun11 > 2012-06-15 00:34 | Report Abuse

Bro chong. I am new to trading. i am a bit confused with the merger price. how is the merger price will affect our gains?

Posted by Eagle95 > 2012-06-15 00:38 | Report Abuse

Cheers,bro chong,tq to u our captain..let's eat abalone tmr.....

Posted by chong > 2012-06-15 01:02 | Report Abuse

For those who think that they play smart & want to take a little profit & sell yesterday & a few days back & hoping to see ECM goes down to collect again, have to regret for doing so. As it is I had warn you all yesterday with the below [see below]& you all do the stupid thing to sell & hope to pick up cheap again, hee,hee, hee


Posted by chong > Jun 14, 2012 01:01 AM X

Friends please read this headline appearing on The Star on 12th June 2012


Tuesday June 12, 2012
Final terms for ECM-K&N RM890mil merger pact likely to be set this week

...now read this

K&N Kenanga, a Kuala Lumpur-based brokerage backed by Deutsche Bank AG, would pay in cash and shares and the final terms would be set this week, said the people, who declined to be named as the information is private.

....it plainly said "final terms would be set this week"


As always I leave you all to decide, the decision is always yours.....whether to stay & hopefully for the announcement soon preferable this week or chabut & make some profits. For me I will stay to see the real BIG GAIN after having average down & bought plenty when it was 77 cents from 82 cents.....take it from me that Ambank chief Azman will not sell cheap when it's NTA is $1.23 cents.

Cheers.


....now please don't try to be too smart or try to outwit others. And to those who keep criticizing to discourage others not to buy, now "eat your heart out" & you keep criticizing & not contributing & sharing here & now you suffer feel bitterness or pain as they long as you live.

For those who have faith & keep collecting to reap the benefits of a merger, you have earn yourself a BONANZA, and as some say a big angpow before Hari Raya.

Cheers & let's be patient & wait a little longer to see the takeover price & then only we celebrate.....yes, patience my friends as patience is the mother of all virtues in buying shares. I had traded for nearly 20 years & I am still surviving. Please don't think that you want the price to increase immediately as soon as you buy, forget it my friends & face reality please. Yes, you all must have seen a number of idiotic persons or members who criticize & talk nonsense the most when they said you all had been cheated by me in buying Bintai at 34 cents & above....now ask yourself what is the price of Bintai now?
Yes, it's now 48.5 cents, a gain of a whopping 14.5 cents per share....that is a gain of 42.65% profit on this Bintai counter.

The same thing will happen to Smartag just like Bintai...please hold Smartag for a least 2 reports more after the commencement of the Customs Department compulsory using of Smartag RFID on containers & please please don't contra but keep for mid or long term.

Cheers & good luck too.

Posted by grss > 2012-06-15 06:43 | Report Abuse

Today is the final day of the week. Let's hope there's going to be BIG announcement on the merger news.

Posted by quyen850906 > 2012-06-15 07:05 | Report Abuse

today already suspended

http://klse.i3investor.com/servlets/anpth/108654.jsp

Posted by nubhan > 2012-06-15 08:35 | Report Abuse

what can i say. I have found a truly genuine investor in this community. Consider my failure to hold ECM as a tuition fee. No regrets. Good luck and congrats.

Posted by sweekim88 > 2012-06-15 09:11 | Report Abuse

Ya, good comment from bro Chong, at least with your posting that some of us hang on to collect gains. Thanks again and hope to see this kind of positive post. Cheers

Posted by tradersam 56 > 2012-06-15 09:12 | Report Abuse

You have traded for 20yrs. Your record speaks for itself. Thanks Chong for your sincererity and reliable predictions!

Posted by lam622622622 > 2012-06-15 09:35 | Report Abuse

Haha!Finally is a good news to all members who trust our leader bro. chong.Who eat abalone and who eat porridge the answer has proven.Bro.chong not only eat abalonelah now can even eat 'FATT TIEW CHEONG'.Cheers and sharing for some other counters.

Posted by carl > 2012-06-15 09:35 | Report Abuse

thanks bro chong

Posted by kltrader > 2012-06-15 09:48 | Report Abuse

http://klse.i3investor.com/blogs/kltrader/12747.jsp

===========
K&N Kenanga has sealed the deal to purchase ECM Libra’s investment bank and stockbroking businesses for rm875 million. The purchase will be satisfied by rm 650 million and the issuance of 95 million ULS and 120 million new Kenanga shares to ECM Libra.

The price tag values at 1.27 times over is book value of rm 688 million as at Jan 31, 2012.

The total payout for the deal is 68 sen per share, while the new Kenanga shares and loan stocks are valued at 63 sen and five sen each respectively.
===========

So the total deal is:
- rm 650 million cash
- 95 million ULS * 0.05 = rm 4.75 million
- 120 million new Kenanga shares * 0.68 = rm 81.6 million
grand total: rm 736.35 million.

How much does that translate to share value of ECM?

Posted by aunloke > 2012-06-15 09:56 | Report Abuse

Let's hope the management will give us a good deal.

Posted by chong > 2012-06-15 10:28 | Report Abuse

Brother kltrader , that means we are getting a total of $1.36 cents.....maybe I am wrong and can anyone else confirm this?

Posted by tansrihew > 2012-06-15 10:30 | Report Abuse

bro chong: thanks for bintai info. made a few bucks from it.

Posted by chong > 2012-06-15 10:49 | Report Abuse

68 cents cash payment is not bad & you also have Kenanga shares & also some Loan stocks which give interest as well......correct me if I am wrong please...thank you.

Kenanga shares may move up with the extra clients from ECM, thereby more profits & thus Kenanga shares may move up....this is just a general opinion only.

Cheers.

PS. Brother tansrihew, you are much welcome & am happy that you make some good bucks....cheers.

Posted by chong > 2012-06-15 11:14 | Report Abuse

Type
:
Announcement
Subject
:

MULTIPLE PROPOSALS

Description
:

ECM LIBRA FINANCIAL GROUP BERHAD (“ECMLFG” OR THE “COMPANY”)
• Proposed Disposal;
• Proposed Business Merger;
• Proposed Capital Repayment;
• Proposed Share Split; and
• Proposed Share Consolidation,
(collectively referred to as the “Proposals”)


Announcement Details/Table Section :


On behalf of the Board of Directors of ECMLFG (“Board”), ECM Libra Investment Bank Berhad (“ECMLIB”) wishes to announce that:

(i) ECMLFG had on 15 June 2012, entered into a conditional share purchase agreement with Kenanga Investment Bank Berhad (“KIBB”) and K & N Kenanga Holdings Berhad (“KNKH”) for the proposed disposal by ECMLFG of the entire equity interest in ECMLIB to KIBB for a total disposal consideration of RM875,114,000 (“Proposed Disposal”) (“SPA”); and

(ii) Pursuant to the Proposed Disposal, ECMLIB simultaneously entered into a business merger agreement with KIBB for the proposed business merger of the businesses of ECMLIB and KIBB (“Proposed Business Merger”) (“BMA”).

The SPA and the BMA were entered into after ECMLFG and KNKH received the approvals of the Minister of Finance via a letter from Bank Negara Malaysia dated 7 June 2012 and the Securities Commission via its letter dated 12 June 2012 for the Proposed Disposal and Proposed Business Merger.

In conjunction with and arising from the above, on behalf of the Board, ECMLIB also wishes to announce that the Company proposes to undertake a capital restructuring as follows:

(i) Proposed capital repayment to the shareholders of ECMLFG comprising a total of RM442,647,000 in cash, 120,000,000 ordinary shares of RM1.00 each in KNKH and RM47,750,000 nominal value of redeemable non-convertible unsecured loan stocks of KNKH (Series A) via a reduction of the par value of the existing ordinary shares of ECMLFG by an amount to be determined, in accordance with Section 64 of the Companies Act, 1965 (“Proposed Capital Repayment”);

(ii) Proposed share split involving the subdivision of the ordinary shares in ECMLFG after the Proposed Capital Repayment, to facilitate the Proposed Share Consolidation (as defined below) (“Proposed Share Split”); and

(iii) Proposed consolidation of the ordinary shares in ECMLFG after the Proposed Share Split resulting in ECMLFG having a reduced issued and paid-up share capital taking into account the Proposed Disposal and the Proposed Capital Repayment (“Proposed Share Consolidation”),

(collectively referred to as the “Proposed Capital Restructuring”).

The details of the Proposals are set out in the attachment.


This announcement is dated 15 June 2012.

Posted by kltrader > 2012-06-15 11:22 | Report Abuse

Correction on the total deal. It should be:
- rm 650 million cash
- 95 million ULS = rm 95 million
- 120 million new Kenanga shares * 0.65 (last price) = rm 78 million
grand total: rm 823 million.

Posted by chong > 2012-06-15 11:31 | Report Abuse

Wah , the agreement is so detailed & too complicated for he to understand, hee, hee, hee

Any accountant or legal eagle here to explain fully in simple language what it gives to use the ECM shareholders.....cheers.

Download the pdf file here please...

http://www.bursamalaysia.com/website/bm/listed_companies/company_announcements/announcements/index.jsp

Posted by chong > 2012-06-15 11:39 | Report Abuse

K & N KENANGA HOLDINGS BERHAD (“KENANGA HOLDINGS” OR “COMPANY”)
PROP
(I) PROPOSED ACQUISITION BY KENANGA INVESTMENT BANK BERHAD (“KIBB”) OF
THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL OF ECM LIBRA INVESTMENT
BANK BERHAD (“EIBB”) FROM ECM LIBRA FINANCIAL GROUP BERHAD (“ECMLFG”)
FOR AN AGGREGRATE PURCHASE CONSIDERATION OF RM875,114,000 (SUBJECT
TO POST-CLOSING ADJUSTMENT) (“PROPOSED ACQUISITION”); AND
(II) PROPOSED BUSINESS MERGER OF THE BUSINESSES OF KIBB AND EIBB
(“PROPOSED BUSINESS MERGER”).
(COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
CQUISITION
1.

Posted by tansrihew > 2012-06-15 11:47 | Report Abuse

bro chong: whats the value of funds we get back after the distribution of 68 sens?

Posted by tansrihew > 2012-06-15 11:54 | Report Abuse

bro chong: what next counter will we be targeting? khsb? ready for ge13?

Posted by Su Jackie > 2012-06-15 12:08 | Report Abuse

Old dear me. First of all thanks to Mr Chong and Mr KL Trader.

I am a retired Chartered Accountant and with 27 pages of report to digest, I have given up.

Why not make it simple. Can someone damn good there just tell me if I own 100,000 of ECM shares bought at 88 sen per share, how much value will I get from Kenanga at a later stage. Forget about the market price when the skirt suspension if=s lifted today or Monday. We need to compare whether it is worth keeping the shares or to sell at market price next.

Please help a Chartered Accountant will you.

Posted by tsejuie > 2012-06-15 12:20 | Report Abuse

I just browsed through the report and this is what I gather:

Per ECM share, we should be getting the following:
Cash: ~RM0.53
KNH shares: ~0.1444 per share
Loan stoack: ~0.06 per share

Assuming you have 10,000 shares of ECM, you will get:
Cash: !RM5,300
KNH shares: 1444 shares
Loan Stock: 575 units

Giving a total of (assuming current KNH price of RM0.65):
RM6,813

This is of course not including the purchase consideration retained by ECM which they are not distributing of about RM0.32 per share.

Posted by tsejuie > 2012-06-15 12:21 | Report Abuse

Sorry, can't comment on what the target price for Kenanga shares will be. Don't have sufficient expertise there. Maybe Chong can assist with that?

Posted by tsejuie > 2012-06-15 12:23 | Report Abuse

Oh ya, and I haven't factored in the 5% interest per annum on the loan stock. An extra RM28 in interest a year based on the example above? Ok, not that material. Haha..

Posted by chong > 2012-06-15 12:34 | Report Abuse

Brother tsejuie . I already am "mong char char" on this agreement. From your reading our ECM is worth 68.13 cents?..OMG

Anyone else can elaborate further?

Posted by damonjun11 > 2012-06-15 12:39 | Report Abuse

is this means if u buy 10000 shares at RM0.815 = RM8150. You still making a losses? Im confused.

Posted by baramundi80 > 2012-06-15 12:49 | Report Abuse

the truth is revealed...the trap has succesfully captured herd of sheeps to slaughter.....hehehe

Posted by chong > 2012-06-15 12:55 | Report Abuse

Brother damonjun11 , from their web site of ECM LIBRA FINANCIAL GROUP BERHAD , I got this...

ECM LIBRA FINANCIAL GROUP BERHAD consist of

ECM Libra is an investment banking group with offices in Malaysia and Labuan providing corporations and individuals with a diversified range of financial solutions and services.

The Group's activities are conducted through seven business divisions, namely:



Investment Banking
Treasury
Stockbroking
Fund Management
Futures and Options
Principal Finance & Investments
Premier Advisory


...so are they selling the stock broking company ONLY to Kenanga while retaining the rest of the divisions?

As brother tsejuie had pointed out that ECM is to retain ...

Quote...This is of course not including the purchase consideration retained by ECM which they are not distributing of about RM0.32 per share.

So does that ECM LIBRA FINANCIAL GROUP BERHAD will NOT be delisted and be trading still without the SHARE BROKING BUSINESS?

So, we have ECM & Kenanga trading together with ECM not being a share stocking broking firm anymore?

Feedback please.

Posted by nubhan > 2012-06-15 12:57 | Report Abuse

OMG

Posted by grss > 2012-06-15 13:05 | Report Abuse

ECM will retain asset management n unit trust division. No plan for delisting so far by ECM