AmResearch maintains its fair value for EON CAPITAL BHD [] at RM7.30 a share and it expects HONG LEONG BANK BHD []’s takeover will likely proceed.
On Tuesday, July 27, EON Cap announced its EGM has been set on Aug 19 to consider Hong Leong Bank’s offer to buy the entire assets and liabilities of EON Cap for cash consideration of RM5.06 billion.
The EGM will include resolutions to consider the distribution of cash proceeds arising from the proposed disposal to all entitled shareholders.
AmResearch said EON Cap had earlier proposed a special dividend of RM3.3 billion or RM4.76/share, and a proposed capital repayment of RM1.76 billion or RM2.54/share.
Aside from shareholders’ approval of the offer at the EGM, EON Cap’s board of directors is empowered to decide whether or not to accept the offer from Hong Leong Bank, subject to the following conditions:
(1) The approval of the Minister of Finance for the offer;
(2) and a final decision of the court on the petition filed by Primus (Malaysia) Sdn Bhd.
The High Court has fixed the case management date on Aug 17, and trial dates on Sept 20-23 and Sept 27-28.
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