Posted by kopit2003 > 2012-06-15 13:14 | Report Abuse

Yah Bro chong! thank you for your recommendation on Bintai :)
and hopefully management of ECM will give us a good deal.
Happy trading all!

Posted by chong > 2012-06-15 13:20 | Report Abuse

The Edge Financial Daily reported this on ECM Libra plans .... the Kuala Lumpur-based company doesn’t intend to sell its asset management operations, according to its June 7 exchange filing.

Posted by chong > 2012-06-15 13:24 | Report Abuse

Worry not ECM holders as I feel we untong a lot...now read this from The Star 8 minutes ago...

KUALA LUMPUR: ECM Libra Financial Group Bhd (ECMLFG) has proposed a capital repayment of RM442.64mil cash to its shareholders following the disposal of its investment banking business to K&N Kenanga Holdings Bhd in return for RM875.1mil in cash, stocks and loan stocks.

ECM Libra said on Friday it would also undertake a distribution-in-specie of 120 million Kenanga shares and RM47.75mil of nominal value of redeemable non-convertible unsecured loan stocks of Kenanga.

It added it would undertake a share split of ECMLFG shares after the proposed capital repayment, to facilitate the proposed share consolidation.

After the completion of the share split, ECMLFG shares shall be consolidated into ordinary shares of RM1 each in ECMLFG.

"The issued and paid-up share capital of ECMLFG after the proposed share split will be consolidated into RM265.222mil comprising 265.22mil ordinary shares of RM1 each under the minimum scenario and RM337.73mil comprising 337.73mil ordinary shares of RM1 each under the maximum scenario," it said.

ECMLFG said the proposed disposal and proposed business merger were timely.

"The board is of the view that as a stand-alone mid-size investment bank, the prospects of the bank will be challenging. Therefore, the proposed disposal provides an opportunity for ECMLFG to exit the industry," it said.

ECMFLG said the proposed capital restructuring was to return the proceeds received from the proposed disposal to the shareholders of ECMLFG.

Posted by Klsenewbie > 2012-06-15 13:37 | Report Abuse

General Announcement
Reference No ML-120615-36585

Submitting Merchant Bank
:
ECM LIBRA INVESTMENT BANK BERHAD  
Company Name
:
ECM LIBRA FINANCIAL GROUP BERHAD  
Stock Name
:
ECM  
Date Announced
:
15/06/2012  


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”)



Attachments
:
ECMLFG Announcement (15.6.12).pdf

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 tsejuie > 2012-06-15 13:53 | Report Abuse

Perhaps I should clarify, the computation I did above is ONLY for the disposal of ECM Libra Investment Bank. Meaning that as shareholders of ECM Libra Financial Group Holding Berhad (listed entity)the deal woks out to about RM1 per share for the disposal of ECM Libra Investment Bank ONLY.

Do not forget that ECM still has other businesses besides the investment bank including unit trusts etc.

Hence, the RM1 (RM0.68 distributed back to shareholders + RM0.32 retained by ECM Libra) is already above the last closing price of ECM. This still does not include the value of their other businesses.

As stated in the report filed with Bursa, they do not intend to seek a delisting as of now and will still continue with their business. This proposal is only for the disposal of ECM Libra Investment Bank Berhad. The RM264.7million (RM0.32 per share) that they are retaining from the proceeds of disposal can still be used to buy another business if they find a good deal.

Posted by tsejuie > 2012-06-15 13:59 | Report Abuse

In summary, is it a good deal?

Well, considering that the value of ECM Libra Investment Bank alone is RM1 per share based on the proposal, at previous closing of RM0.865 for ECM Libra Financial Group Holdings (listed entity), it is a 15.6% increase. So, this is a GOOD deal for shareholders. There is still a value to their other businesses which has not been included.

Note, do not forget that the prices you are seeing are just for the disposal of their main business, ECM Libra Investment Bank Berhad. Just one of their subsidiaries (the main one). They still have several other lines of business (subsidiaries) that you can see from their annual report.

Posted by tansrihew > 2012-06-15 14:22 | Report Abuse

i think it is a good deal. just wondering how much the price will fly?

Posted by chong > 2012-06-15 14:38 | Report Abuse

Friends, I just phone to the ECM Libra Financial Group Bhd HQ and she told me that ONLY the share broking business is hive off but we are getting a very much better deal than OSK takeover in that we have the following....

1. cash of 53 cents for every ECM share

2. We get some Kenanga shares

3. We get Loan stocks with interest given

4. And lastly we get to keep our ECM shares which will NOT BE DELISTED BUT TRADED.

To sum it up we minority shareholders are getting a better deal than RKB OSK takover where nothing is given.

Cheers,

BTW, this evening ECM will have a teleconference.

Posted by tsejuie > 2012-06-15 14:43 | Report Abuse

Yup, after everything is settled (capital repayment, share split, share consolidation) it should be around RM0.50 per share I think, at existing issued share base.

So as Chong said, we still have ECM shares that can be traded with a value that will be clearer as the merger nears completion, on top of the cash, Kenanga shares and loan stock (at 5%pa no less).

Posted by Su Jackie > 2012-06-15 14:59 | Report Abuse

With the fantastic effort contributed by Mr Chong, we should make him the Executive Chairman of the Forum (for Shares we share common Interest only) e.g. ECM and some others that he can contribute comment so well. He is awake most of the early mornings (of course watching Euro football as well. He has the initiative - he called ECM HQ !!! We like it. Hip Hip Hurray.Thank you so much Mr Chong.

What say you, Comrades ?

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

agree............. All the way Chong..

Posted by laxlav > 2012-06-15 15:16 | Report Abuse

a i am new to this forum, agree and hope that what Mr Chong says becomes a reality for all of us who have bought the shares and may god bless him and his family

Posted by mrK0K3N > 2012-06-15 15:26 | Report Abuse

Then after all, the name could be "Kena-Bra", just like SKPETRO.....

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

may god bless u

Posted by mrK0K3N > 2012-06-15 16:19 | Report Abuse

Bro Chong, how you get 53 cents?

Posted by chong > 2012-06-15 16:29 | Report Abuse

Brother mrK0K3N, it's like this..

Proposed capital repayment to the shareholders of ECMLFG comprising a total of RM442,647,000 in cash divide by 830 million shares.

Cheers

Posted by mrK0K3N > 2012-06-15 16:41 | Report Abuse

But then, is it already finalised? And for Kenanga shares, should be 1-to-4, right?

Posted by chong > 2012-06-15 17:05 | Report Abuse

2143 ECM ECM LIBRA FINANCIAL GRP BHD
ECM-RESUMPTION OF TRADING

LISTING'S CIRCULAR NO. L/Q : 65219 OF 2012Further to Listing's Circular No. L/Q 65198 of 2012, kindly be advised thattrading in the above Company's shares will resume with effect from 9.00a.m., Monday, 18 June 2012.Your attention is drawn to the Company's announcement dated 15 June 2012.Sr. Mgr. Issuers, Listing Div.


15/06/2012 04:21 PM

Posted by istyletech > 2012-06-15 17:06 | Report Abuse

hai there bro chong , nice call on ECM , but what about your call at E&O and his son?? , his son died d??

Posted by chong > 2012-06-15 19:20 | Report Abuse

Let's see how ECM opens on Monday morning.

Brother istyletech , the issuing house CIMB is throwing down.....mother price no change but throw CA from 4 cents to 3 cents, then next day 3 cents to 2 cents, then to 1.5cents....and now today 10 cents to last minute at 5 cents. Got another 2 months left before expiry date.....hope some miracles happen.

Posted by tcr5585 > 2012-06-15 19:26 | Report Abuse

chong, what is the conclusion of ECM proposal?

Posted by Su Jackie > 2012-06-15 19:32 | Report Abuse

Give Chong a break. He needs to take his bath and dinner too. Maybe he will start again at 8.30 pm and drill through until 3 am. Keep it up. I am sure most of us won't be able to sleep early Monday morning. We will all be at the market to watch what happens.

And it is simple on Monday - whether to sell or not to sell.

Plenty of news to read on Saturday and Sunday.

Posted by tcr5585 > 2012-06-15 19:35 | Report Abuse

Greece election result will effect the performance of KLSE and all the world.let us bless got good news of greece election

Posted by chong > 2012-06-15 19:40 | Report Abuse

Well brother tcr5585, I should say we got a good deal....cash of 53 cents + Kenanga shares + Loan stocks + we get to keep our ECM shares for trading.

Now does this makes you feel?

Cheers.

Posted by tcr5585 > 2012-06-15 19:42 | Report Abuse

chong, thanks. what u mean below
53 dividen + Kenanga share how many + loan?

Posted by tcr5585 > 2012-06-15 19:49 | Report Abuse

can give example if holding 10k ECM right now

Posted by ejtic > 2012-06-15 19:50 | Report Abuse

With such attractive package, the deal is just great. Yahoooooo.....

Posted by chong > 2012-06-15 19:51 | Report Abuse

brother tcr5585 , what I mean is this.....we keep whatever amount of ECM shares we have now & we get something FREE, hee, hee, hee

FREE is we get 53 cents special dividend, a little bit of Kenanga shaes plus a little bit of Loan Stock & we get to keep our ECM shares for trading later on. Hope this is clear to you.

Cheers & let's wait till Monday morning opening.

Posted by tcr5585 > 2012-06-15 19:53 | Report Abuse

thank u chong.. hope this package will let us celebrate eat abalone

Posted by chong > 2012-06-15 19:58 | Report Abuse

The deal package is a good one & do hope traders will see it as a good deal without thinking about the RHB OSK deal which is a bad one as nothing is given. Let's see what the critics says.

Cheers.

Posted by chong > 2012-06-15 20:05 | Report Abuse

KUALA LUMPUR, June 15 (Reuters) - Malaysian investment bank, K&N Kenanga Holdings Bhd, will buy rival ECM Libra Financial Group Bhd's financial units for 875.1 million ringgit ($274.5 million), making it the country's largest independent investment bank by sales and third-largest share brokerage by trading value.

Kenanga will finance the deal by issuing 120 million of its shares at one ringgit each and 95.5 million loan stocks along with 659.6 million ringgit in cash, its group managing director, Chay Wai Leong, told reporters at a news conference.

The deal, expected to be completed by year-end, values ECM Libra's investment banking arm at 1.27 times book value, which at end January stood at 688 million ringgit ($215.8 million).

Lee Kok Khee, senior director at Kenanga Investment, told reporters on Friday that the purchase would boost revenue by 10 to 15 percent annually due to a wider customer base and distribution network.

The move comes as Malaysian authorities encourage bank mergers to create larger groups with the financial muscle to grab market share as the Association of South East Asian Nations plans to form a single economic zone by 2015.

It also follows the recent tie-up between RHB Capital Bhd and OSK Holdings Bhd's investment bank, which saw the merged entity become the biggest brokerage service provider by market share in Malaysia.

Kenanga and ECM Libra said on June 7 they had obtained Malaysian government approval for the deal.

"With the merger, Kenanga will have one in every five remisiers in the country, giving it Malaysia's largest remisier network" said Chay, Kenanga's group managing director.

ECM Libra intends to distribute the 16.4 percent stake it will hold in Kenanga after the deal among its existing shareholders.

Posted by ejtic > 2012-06-15 20:24 | Report Abuse

Based on the above 1.27x book value @ RM1.23 (NAV @ Jan 31, 2012), our current selling value to K&N is RM1.5621. If we base on the last trading price 0.865, there is a profit margin of 0.6971. That's what I meant it' a great deal.

Posted by ChuChu > 2012-06-15 20:28 | Report Abuse

I have been reading this column with great intrest, especially all bro chong's explanation.
I bought 10lot @ 0.85 and it has been my first indulgence in share market.
So how much had I already made so far ? He,he,he,he....

Posted by eagleis > 2012-06-15 21:07 | Report Abuse

Ah猪猪 ah. u r gonna b very rich ur 1st indulgence in shares turns up fine wat abt ur 1st indulgence in sex

Posted by Eagle95 > 2012-06-15 23:04 | Report Abuse

C ongratulation chu chu n all ECM bro,let eat abalone next Monday...cheers

Posted by Rajandaran Kannaya > 2012-06-15 23:10 | Report Abuse

Where can I find vegetarian abalone.

Posted by Eagle95 > 2012-06-15 23:29 | Report Abuse

Bro Rajan,just celebrate,can eat anything not only abalone la...haha..

Posted by eagleis > 2012-06-16 10:23 | Report Abuse

@rajan. eat grass like a lembu since u r a vegetarian. y crave 4 vegetarian abalone or shrimp or duck or chicken huh! u r an insane vegetarian.

Posted by Namoyaki Takarajima > 2012-06-16 10:50 | Report Abuse

eagleis, LV order. LV- Language Violence. Hahaha.

Posted by Rajandaran Kannaya > 2012-06-16 10:53 | Report Abuse

Celebration must be with something special. Speaking for my self.

Posted by Namoyaki Takarajima > 2012-06-16 11:47 | Report Abuse

celebration means to have a gathering and compliments each other, not necessarily to celebrate with an expensive food, but to spend time together with types of food that well like by each other.

Posted by Rajandaran Kannaya > 2012-06-16 12:08 | Report Abuse

Everyone of us have a different way of celebrating. Thats why I wrote speaking for my self.

Posted by chong > 2012-06-16 14:59 | Report Abuse

Saturday June 16, 2012
Kenanga gears up to carve niche
By JOHN LOH
johnloh@thestar.com.my

KUALA LUMPUR: With ECM Libra Financial Group Bhd's investment bank now in its fold, K&N Kenanga Holdings Bhd is gearing up to carve a niche in what it considers a lucrative sector retail investors.

“The acquisition will solidify our position in the retail segment. If you look at it, the estimated gross industry yield is 30 to 40 basis points for retail, 15 to 25 for institutional, and two to five for foreign banking,” group managing director Chay Wai Leong told StarBizWeek in an interview.

To Chay, who joined Kenanga last year from RHB Investment Bank Bhd, the fact that Malaysia's retail participation in equities is substantially lower than its regional peers is no impediment.

Bursa Malaysia has close to 4.1 million registered CDS accounts, but only 7%, or 300,000, are active users.

“It (retail participation) used to be a lot higher in the past. In Singapore, the market is 40% to 50% retail, 60% in Taiwan, 56% in Thailand, and 46% in South Korea.

“We want to go to the market with a lot of upside. The effort spent on marketing to the retail sector can be drastically improved,” Chay added.

After some nine months since Bank Negara gave its nod for Kenanga and ECM Libra to begin merger talks, they signed the conditional share purchase agreement yesterday, in which the former agreed to pay RM875.1mil for the entire capital of ECM Libra Investment Bank Bhd.

The deal values ECM Libra's stockbroking and investment bank businesses at 1.27 times price-to-book, based on its audited consolidated net assets of RM687.7mil as at Jan 31, 2012, representing a premium of RM187.4mil.

Kenanga will settle most of the transaction with RM659.6mil in cash, and the balance RM215.5mil by issuing new shares of RM1 each and RM95.5mil in redeemable non-convertible unsecured loan stocks.

Following the disposal, ECM Libra will undertake a capital repayment to its shareholders of 67.1% of the cash settlement, or RM442.65mil, a distribution in specie of all the new Kenanga shares and RM47.75mil of the loan stocks.

It said in a statement to the stock exchange that shareholders stood to receive a total distribution of either 62 sen or 68 sen, depending on whether all or none of its employees share option scheme options are exercised prior to the entitlement date.

Posted by chong > 2012-06-16 15:07 | Report Abuse

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 rm650 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 rm688 million as at Jan 31, 2012.

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

If the deal goes through, ECM will have another 12 months to find a new business. After the divestment ECM will retain its asset management and unit trust business. It will also have a sizeable cash to acquire assets.

Upon completion of the deal, Kenanga will emerge as one of the three largest stockbroking outfits in Malaysia . The deal cannot be satisfied entirely in cash as Kenanga does not have the financial muscle. The loan stock deal would also prevent ECM from holding a large stake in Kenanga. The 120 million Kenanga shares issued in the deal will see ECM Libra emerge with a 16.39% stake in Kenanga.

ECM Libra’s major shareholder is Tan Sri Azman with a 16.18% stake. He also holds 17% stake in AMMB Holdings.

Posted by jtpc2006 > 2012-06-16 17:07 | Report Abuse

bro Chong, how nice to show the door now to your detractors, they know who they are!
hip hip hooray hero!!!

Posted by astrowoon > 2012-06-16 19:22 | Report Abuse

bro chong, do you know how much exactly we will receive per share for the loan stock and Kenanga share? and do you expect ECM will drop on Monday since many people may profit-taking? as a newbie who invested just four months ago this is my big money...thank you bro Chong and thank God for His grace =)

Posted by chong > 2012-06-16 23:58 | Report Abuse

Bother astrowoon , let's roughly calculate it this way...


1] A 120 million shares given to ECM & you divided by 830.9 million shares equal to 0.14442 Kenanga shares per 1 ECM shares....take for example you have 100,000 shares, that means you will be getting 14,444 Kenanga shares....not bad actually with Kenanga price at 65 cents last....Kenanga shares is bound to go up because of more future earnings dues to the increase in clients from ECM.

2] 95 million load stocks [with interest given] given to ECM and you
divide by total of 830.9 EM shares equal to 0.1143338 shares of 5 cents each....so take for example you have 100,000 shares , that means you will be getting 11,434 loan stocks.....also very good indeed.

So now if you have 100,000 ECM shares you will get $53,000 special dividend + 14,000 Kenanga shares value at 65 cents each = $9,399[ at present price & if Kenanga goes up higher, you will get more] + 11,434 loan stocks value at 5 cents each = $571 .......so all these add up is very good indeed as you get it all FREE as you still get to keep your 100,000 ECM shares for trading....price of ECM shares we get to know after all the dust had settled.

If the deal goes through, ECM will have another 12 months to find a new business. After the divestment ECM will retain its asset management and unit trust business. It will also have a sizeable cash to acquire assets.

Brother astrowoon , I am not scared that price will fall since many will profit taking. Actually I may keep my ECM shares to get more for future trading. Let's say I bought 100,000 ECM shares at 80 cents = $80,000 and now I get back about $62,970, that means I pay ONLY $17,030
for 100,000 ECM shares, that means I am now paying about 17 cents for each ECM shares which I can still trade & lets say if ECM shares is traded at 50 cents per shares after the dust [dividend , Kenanga shares, Loan stocks given] had settle down, I get untong of 33 cents, not bad huh.

You given your self some thought & you decide if you need to sell your ECM shares now or hold it for future gains positively.

Cheers brother & all the best.

Posted by chong > 2012-06-17 01:06 | Report Abuse

Brother jtpc2006, I thank you for your support & kind words. I am the least bothered now or worried when a good number of members here email me privately & say that they will see what they can done for me. Let the detractors write & say what they wants & they all be held responsive for all they say later on. With the new amended internet laws coming into effect, we will see.

In fact, a good number of members here too had email me given me support & they say to me privately they are getting all the relevant information to what was said in the forum. Some of them say that they will be writing to MSC to get their IP address & other information. A few of those who email me are legal eagles [who had make some good money from my recommendations] had told me they will see what can be done for me for which I thank them here now & through the email.

Let me frankly say this to all my friends....each & everyone of you all have a IP address and they are like your thumb prints which are traceable. So please be very careful what you write in an open public forum as you will be held responsible for what you write or say.

I know there's one person here who condemns me on every share counter I recommend. I now know who that person is now as some kind members had trace it. Frankly this person had been scolding me in Facebook and in Lowyat forum since quite sometime and now he is coming here too. He is young & very new to shares trading & I with my years of trading experience took to trouble to teach a few tricks of share trading through the MSN messanger every evening after trading & every early morning too. I even took the trouble to phone almost everyday to teach him how to be a good trader to make money but all these comes to nothing when he reveal some trading information which I send to him and a number of good friends & ask him to keep secret but he wanted to "play hero" & copy & paste everything in his Facebook and also in one Stock & Shares Forums in Facebook. Let it be and I have learn that it is better to treat & TRUST our pet dog better than this so call friend & human being who play you out. I remember when I ask this person why he copy & paste this confidential share information in Facebook when I said & emphasis that this private & not to reveal anything, he took to scold & curse me in Facebook by say this....Uncle, you are almost 1 foot in your grave & you still want to trade, better you die", OMG
Can we have such a young graduate who talks such things to an older person like me...wonder if his parents teach him to respect elders [lau chien pae]. And he told everyone in Facebook to sell all the shares in that particular counter.....oh, such a irresponsible person exist on this earth.

Well, that's life...the world is round and round & round it goes.

So, nothing much to add now but to say good luck to all & may all your trades be successful.....cheers, stay happy always.

Posted by Eagle95 > 2012-06-17 01:50 | Report Abuse

Tq,bro chong,u r great...cheers

Posted by Snowy > 2012-06-17 02:16 | Report Abuse

People like that should be punished by Justice Bao, they exist only to cause misery in this world

"To Chay, who joined Kenanga last year from RHB Investment Bank Bhd, the fact that Malaysia's retail participation in equities is substantially lower than its regional peers is no impediment.

Bursa Malaysia has close to 4.1 million registered CDS accounts, but only 7%, or 300,000, are active users.

“It (retail participation) used to be a lot higher in the past. In Singapore, the market is 40% to 50% retail, 60% in Taiwan, 56% in Thailand, and 46% in South Korea."

I've been wondering about this for some time, what happened to all the participants? They don't trust the stock market?