EON Cap's board to present proposal to shareholders

KUALA LUMPUR: EON Capital's board of directors will present a proposal by Hong Leong Bank to acquire the former's assets and liabilities with RM5.06 billion cash or RM7.30 per share in an EGM soon.
MIMB Investment Bank said in an announcement Friday on behalf of the board that a resolution would be tabled at the EGM on the proposal as well as the proposed distribution of the cash proceeds arising from the disposal to the shareholders.
The investment bank said this was being done after taking into consideration Credit Suisse Securities (M) Sdn Bhd's opinion that the offer was not fair from a financial perspective.
Credit Suisse was appointed as the independent adviser for the deal.
MIMB also said EON Capital's board member Ng Wing Fai's views would also be included in a circular to shareholders for the upcoming EGM. Ng, whose Primus Pacific Partners (HK) Ltd held a 20.2% stake in EON Capital, has expressed disagreement with the board over the offer.
MIMB said after taking into consideration Credit Suisse's opinion, the advice of the international adviser Goldman Sachs and all relevant aspects of the offer, the board has resolved that the proposed disposal was in the best interest of the bank.
MIMB said should the acquisition be passed, the cash distribution would be through a special dividend estimated to be about RM3.30 billion based on EON Capital's audited financial statements as at December 31, 2009 and, a capital reduction exercise amounting to RM1.76 billion.