Hong Leong Bank Bhd (HLBB) will hold an EGM on Aug 23 at Wisma Hong Leong for shareholders to vote on the proposed acquisition of the entire assets and liabilities of EON Capital Bhd (EONCap).
Subject to shareholders approving the purchase of EONCap, HLBB will propose a renounceable rights issue of shares of RM1 each in HLBB to raise RM1.6 billion at an entitlement date to be determined later.
HLBB is proposing to acquire EONCap for RM5.06 billion, which translates to RM7.30 per share.
This is HLBB’s second offer for EONCap, after its first offer of RM7.10 a share was shot down by EONCap’s board which said the price undervalued the bank.
EONCap will be holding its EGM for shareholders to vote on the proposed disposal on Aug 19.
Its board had decided the EGM would take place despite objections by its single largest shareholder, Primus (Malaysia) Sdn Bhd, which is the Malaysian arm of Hong Kong-based Primus Pacific Partners Ltd.
This article appeared in The Edge Financial Daily, July 30, 2010.
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