Kenanga Investment Bank Bhd (KL:KENANGA) announced on Tuesday that Malaysia’s central bank has approved a 15.2% share increase in Merchantrade Asia Sdn Bhd, the country’s largest money services company operator.

The acquisition will expand Kenanga’s stock holding in Merchantrade from 4.74% to 19.94%, making it the second largest shareholder behind managing director and founder Ramasamy K Veeran, according to a company statement. The financial details of the transaction were not disclosed.

“The increased equity interest in Merchantrade reflects Kenanga’s commitment to deepening its relationship with the company, and underscores the group’s dedication to fostering partnerships within the financial ecosystem, with the aim to explore synergies and expand innovative offerings,” disclosed Kenanga.

Merchantrade offers international money transfers and currency exchange through 94 branches and over 400 agent sites in duty-free zones, travel agencies, luxury hotels, and major shopping malls, according to its website. The company also offers digital payment services and travel insurance.

Kenanga teamed with Merchantrade in 2020 to explore digital potential, resulting in the launch of Kenanga Money, Malaysia’s first stockbroker e-wallet.

“Together, we are poised to accelerate our collective efforts in delivering innovative solutions and enhancing the digital experience for our customers,” said Kenanga managing director Datuk Chay Wai Leong.

“We are excited about Kenanga’s increased equity interest in Merchantrade, which further solidifies the synergies between both companies,” Merchantrade’s Ramasamy added in the same statement. “With this new development, we eagerly anticipate the next phase of our journey.”