EON says no to HLBANK offer for EONCAP

Written on February 3, 2010 – 11:45 am | by Kampung Boy |

EON Capital BHD (EONCAP) has said no to Hong Leong Bank Bhd (HLBANK) RM4.92 billion cash offer to buy the entire assets and liabilities.

EONCAP says, HLBANK offer is too low and undervalues EONCAP. HLBANK is disappointed with the decision.

EONCAP chairman, Tan Sri Syed Anwar Jamalullail says that EONCAP rejected the offer because it wasn’t the best value for all shareholders.

Chairman added EONCAP is positioned for strong and sustained growth in the future as an independent company.

EONCAP major shareholders :-

Rin Kei Mei - (15.5%)
Tan Sri Tiong Hiew King - (17.1%)
Primus Partners (HK) Ltd - (20.2%)
Khazanah Nasional Bhd - (10%)
Employees Provident Fund(EPF) - (12%)

HLBANK offered RM7.10 a share buy analysts say that RM8 per share was a fairer price.

Conclusion

HLBANK aspiration of being the 4th biggest bank in Malaysia didn’t materialize after the failure to capture EONCAP. Whether this will impact the share price of HLBANK or EONCAP i am not too sure about it.

Maybank is the largest bank in Malaysia followed by CIMB and then Public Bank.

Other stories on EONCAP decision not to accept HLBANK offer (Click to read) :-

Hong Leong Disappointed With EonCap’s Decision
EON Capital Rejects HLBB Offer
EON Bank Can Stand Alone, With Or Without Merger Offer, Says CEO

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