KENANGA ANNUAL REPORT 2019

319 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 56. SIGNIFICANT AND SUBSEQUENT EVENTS (a) There was no significant event during the financial year ended 31 December 2019 other than the following: Acquisition of Libra Invest Berhad Kenanga Investors Berhad (“KIB”), a wholly-owned subsidiary of the Bank, had on 28 March 2019 entered into a conditional SPA with ECM Libra Financial Group Berhad (“Vendor”) to acquire the entire issued share capital of LIB comprising 6,500,000 ordinary shares in LIB held by the Vendor, subject to the terms and conditions as stipulated in the SPA (“Proposed Acquisition”). BNM had approved the Bank’s and KIB’s application for the proposed acquisition on 24 May 2019 and 29 May 2019 respectively subject to KIB obtaining the necessary approval from the Securities Commission Malaysia. Securities Commission Malaysia had on 31 May 2019 approved KIB’s application for the Proposed Acquisition subject to the following conditions: (1) KIB is to fulfil the representations made and ensure that the acquisition is managed effectively and does not adversely affect the clients of the licensed entities; (2) KIB is to ensure that: (i) the merger and integration of th operations are managed effectively with no disruption to the functioning of the licensed entities; (ii) the soundness of the licensed entities is not adversely affected; and (iii) any potential risks are addressed and managed on an on-going basis. Following the approval from the shareholders of the Vendor on 27 June 2019 for the disposal of the entire issued share capital of LIB held by the Vendor to KIB, all conditions precedent pursuant to the conditional SPA dated 28 March 2019 have been fulfilled and hence, the SPA has become unconditional. On 8 July 2019, KIB had completed the Proposed Acquisition. The recognised amounts of identifiable assets and liabilities arising from the acquisition is disclosed in Note 13 (ii). (b) There was no significant event subsequent to the financial year ended 31 December 2019.