1.  INTRODUCTION 

The Board of Directors (“Board”) of the Company wishes to announce that Kenanga had, on 24 August 2022, entered into a Memorandum of Understanding (“MOU”) with AntChain Technology Pte. Ltd. (“AntChain”) to jointly explore and evaluate a possible collaboration for AntChain to provide a mobile digital solution, namely the Mobile Platform as a Service (“m-PAAS”) to Kenanga for the development of Kenanga’s SuperApp (“SuperApp Platform”).

Kenanga and AntChain are collectively referred to as the “Parties” and individually referred to as a “Party”.

2.  INFORMATION ON ANTCHAIN

AntChain is a company registered under the laws of Singapore, which is a member within the Ant Group of Companies (“Ant Group”). It is an infrastructure, platform, technology and solution services provider of among others, the m-PAAS which provides a one-stop solution for the mobile development, testing, maintenance and operation.

Ant Group is a world-leading internet open platform provider, that supports its partners to enable inclusive, convenient digital life and digital financial services for consumers and small and micro-sized enterprises (SMEs). It is a diversified technology and finance conglomerate headquartered in China with a global presence, including Malaysia.

Ant Group’s Alipay provides financial payments and other services for over 1.3 billion customers and 80 million merchants, and is considered the second largest financial services firm in the world. Ant Group is an affiliate company of the Chinese conglomerate Alibaba Group.

3.  RATIONALE

The MOU contemplates the Parties to jointly explore the possibility of AntChain providing a mobile digital solution to Kenanga for the development of the SuperApp Platform, a single integrated experience for existing and new prospective clients.

The collaboration between Kenanga and AntChain serves to ease and expedite the development of the SuperApp Platform by leveraging on Ant Group’s extensive experience in modern technologies and platforms.

4. DETAILS OF THE MOU

4.1   SALIENT TERMS OF THE MOU

        The salient terms of the MOU include, amongst others, the following:

1. AntChain to provide an m-PAAS infrastructure to the SuperApp Platform, and to develop and customise the same to meet the requirements of Kenanga’s wealth products and other product offerings by Kenanga;
2. AntChain will cooperate and work with Kenanga on integrating Kenanga’s existing wealth products to that of the SuperApp Platform; and
3. The Parties shall respectively use their reasonable efforts to obtain all such necessary third-party and/or regulatory approvals required for the implementation of the SuperApp Platform.

4.2   DURATION OF THE MOU

The MOU shall be effective as of the day of the signing by the Parties and shall remain valid and in force for a period of twelve (12) months unless terminated earlier upon mutual agreement by the Parties in writing, the execution of the relevant binding agreements or if the relevant regulatory approvals are not obtained.

5.  EFFECT OF THE MOU

The MOU will not have any effect on the issued share capital and substantial shareholders’ shareholdings of the Company.

The MOU is not expected to have any material effect on the net assets, gearing and earnings of the Company for the financial year ending 31 December 2022.

6.  DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of the Company and/or persons connected with them have any interest, direct or indirect, in the MOU.

7.  APPROVALS REQUIRED

The execution of the MOU does not require the approval of shareholders of the Company or any relevant authorities. However, upon execution of the relevant binding agreements, the Company will make further announcement in accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, if required.

8.  STATEMENT BY THE BOARD

The Board, having taken into consideration all aspects of the MOU, is of the opinion that the MOU is in the best interest of Kenanga Group.

9.  DOCUMENTS AVAILABLE FOR INSPECTION

The MOU is available for inspection at the registered office of the Company at Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Wilayah Persekutuan, Malaysia during normal office hours from Monday to Friday (except public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 24 August 2022.