KENANGA ANNUAL REPORT 2020

331 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD 56. SIGNIFICANT AND SUBSEQUENT EVENTS (a) There was no significant event during the financial year ended 31 December 2020 other than the following: Proposed Disposal On 1 April 2020, the Bank announced that Kenanga Investors Berhad (“KIB”), a wholly-owned subsidiary of KIBB, has on 1 April 2020, entered into a conditional Share Purchase Agreement (“SPA”) with Ericsenz Partners Sdn Bhd (“Ericsenz Partners”) to dispose of the entire issued share capital of Libra Invest Berhad (“Libra Invest”) comprising 6,500,000 ordinary shares in Libra Invest held by KIB, subject to the terms and conditions as stipulated in the SPA. On 1 July 2020, KIB and Ericsenz Partners have mutually agreed to extend the period required for both parties to fulfil the conditions precedent stipulated in the conditional SPA for a further period of three (3) months commencing from 1 July 2020 to 30 September 2020. On 30 July 2020, Libra Invest has submitted an application to the Securities Commission Malaysia to seek its approval for the change of Libra Invest’s shareholder from KIB to Ericsenz Partners. On 29 September 2020 and subsequently on 31 December 2020, KIB and Ericsenz Partners have mutually agreed to extend the period required for both parties to fulfil the conditions precedent stipulated in the conditional SPA for a further period of three (3) months commencing from 1 October 2020 to 31 December 2020, and subsequently from 1 January 2021 to 31 March 2021. Changes in composition of the Group On 5 August 2020, Kenanga Capital Islamic Sdn Bhd, a wholly-owned subsidiary of Kenanga Capital Sdn Bhd, which in turn is a wholly-owned subsidiary of the Bank, had issued 2,401,960 ordinary shares (equivalent to 49% shareholding) to Bay Amarantite Sdn Bhd. Arising therefrom, the shareholding in Kenanga Capital Islamic Sdn Bhd is 51% held by Kenanga Capital Sdn Bhd and 49% held by Bay Amarantite Sdn Bhd. Coronavirus pandemic (COVID-19) On 11 March 2020, the World Health Organisation declared COVID-19 outbreak as a pandemic as it has continued to spread across the world. This pandemic has significantly impacted the global business environment and financial conditions. The Malaysian government had implemented a Movement Control Order (MCO) to restrict human movements and closed all non-essential business offices in a move to curb the spread of COVID-19. The MCO was subsequently relaxed to allow certain businesses to recommence business activities. In order to mitigate the weaker economy outlook, the Malaysian government has implemented several relief measures to help to stimulate the economy, including a 6 months moratorium on repayments of loans and financing from 1 April 2020 to 30 September 2020.