Hong Leong said in a separate statement that it had received approval.
"This is one hurdle cleared. Now EONCap just needs to get its shareholders' approval. And if the Hong Leong offer is declared valid in court, you'll have a merger," said an analyst who tracks the stock at a local brokerage.
EONCap's shareholders are to meet on August 19 to decide on the deal despite opposition from its biggest shareholder, Primus Pacific Partners.
Primus, which thinks Hong Leong's implied offer price of RM7.30 a share for the smaller bank's assets and liabilities is too low, has taken the matter to court, claiming the offer is illegal in structure and unfair to smaller shareholders.
The case goes to trial on September 20-23 and September 27-28.
While it is "not unusual" for the government via Bank Negara to approve a corporate deal prior to shareholders doing so, the move also indicates support for a Hong Leong-EONCap merger, said an analyst at a foreign research house.
A merger between the two would create the country's fourth largest banking group.
EONCap's board has said that if its shareholders approve the deal at the August 19 meeting - and analysts largely expect they will - it will only be able to accept the offer if the court declares it legal.
Hong Leong recently extended its deadline for EONCap to accept the offer deal to November 30, from August 15.
EONCap's three biggest shareholders which have indicated they want to sell - Rin Kei Mei, Tan Sri Tiong Hiew Kheng and Khazanah Nasional Bhd - already hold a combined 41.7 per cent stake. The deal needs only 50 per cent plus one vote to be successful at the shareholders' meeting.
If the deal proceeds, Hong Leong has up till the end of this year to decide what to do with EONCap's investment banking licence held through MIMB Investment Bank Bhd.
Bank Negara's policy prohibits a domestic banking group from holding two investment bank licences.
By Adeline Paul Raj
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