EON Capital Bhd's (EONCap) (5266) largest shareholder has resorted to taking further legal action against the company in its latest attempt to thwart a takeover by Hong Leong Bank Bhd.
The shareholder, Primus (Malaysia) Sdn Bhd, filed a summons with the High Court yesterday asking that resolutions reached at a shareholders meeting last Monday be declared null and void.
At that meeting, shareholders representing 97 per cent of the voting shares had been in favour of Hong Leong's RM5.06 billion takeover bid.
EONCap, in a statement to the stock exchange late yesterday, said it was seeking legal advice on this latest development.
Primus had in June launched a suit against EONCap's directors, claiming the Hong Leong bid was unlawful in structure and oppressive to small shareholders.
The case went to trial last week, and the next dates set for hearing are October 20, 27 and 27, as well as November 4.
Prior to Primus' latest action, the outcome of that ongoing court case had been the only thing standing in the way of Hong Leong's plan to take over EONCap.
Hong Leong's shareholders had yesterday okayed the takeover deal that would create the country's fourth largest banking group.
There was not a single objection to the deal from those present at the meeting, Hong Leong's spokesperson said of the show-of-hands vote.
This had been the last of the approvals needed for the deal. Approvals from EONCap's shareholders and the Ministry of Finance, via the central bank, had been secured earlier.
"We're probably much more certain now than before that the takeover will go through. The shareholders of both banks have voted overwhelmingly for it and regulator seems supportive of a merger," an analyst from a foreign brokerage told Business Times prior to the latest move by Primus.
With Primus now looking to have the outcome of the EONCap shareholders meeting declared null and void, a takeover may be prolonged and Hong Leong's patience is likely to be tested.
Hong Leong has given EONCap a deadline of until November 30 to accept its offer. It had already extended its deadline once before.
Hong Leong may be amenable to extending its deadline again if it had to come to that, but it definitely won't raise its bid for the smaller bank, analysts said.
Primus is against the Hong Leong's implied offer of RM7.30 a share as its entry cost in the bank in 2007 was much higher at RM9.55 a share.
At that meeting, shareholders representing 97 per cent of the voting shares had been in favour of Hong Leong's RM5.06 billion takeover bid.
EONCap, in a statement to the stock exchange late yesterday, said it was seeking legal advice on this latest development.
Primus had in June launched a suit against EONCap's directors, claiming the Hong Leong bid was unlawful in structure and oppressive to small shareholders.
The case went to trial last week, and the next dates set for hearing are October 20, 27 and 27, as well as November 4.
Prior to Primus' latest action, the outcome of that ongoing court case had been the only thing standing in the way of Hong Leong's plan to take over EONCap.
Hong Leong's shareholders had yesterday okayed the takeover deal that would create the country's fourth largest banking group.
There was not a single objection to the deal from those present at the meeting, Hong Leong's spokesperson said of the show-of-hands vote.
This had been the last of the approvals needed for the deal. Approvals from EONCap's shareholders and the Ministry of Finance, via the central bank, had been secured earlier.
"We're probably much more certain now than before that the takeover will go through. The shareholders of both banks have voted overwhelmingly for it and regulator seems supportive of a merger," an analyst from a foreign brokerage told Business Times prior to the latest move by Primus.
With Primus now looking to have the outcome of the EONCap shareholders meeting declared null and void, a takeover may be prolonged and Hong Leong's patience is likely to be tested.
Hong Leong has given EONCap a deadline of until November 30 to accept its offer. It had already extended its deadline once before.
Hong Leong may be amenable to extending its deadline again if it had to come to that, but it definitely won't raise its bid for the smaller bank, analysts said.
Primus is against the Hong Leong's implied offer of RM7.30 a share as its entry cost in the bank in 2007 was much higher at RM9.55 a share.
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