EON Capital Bhd (EON Cap) director Datuk Seri Dr Tiong Ik King yesterday testified in court on the conduct of Primus (M) Sdn Bhd, describing the latter as “a dangerous investor” with a “reckless” attitude towards the BAFIA (Banking & Financial Institutions Act).
When questioned by one of the respondent counsels, S. Suhendran, Tiong, whose family has a 16.6% stake in EONCap, told the court that one of the major reasons his family wanted to exit EONCap was because of concerns on Primus’ conduct.
Tiong was testifying as a witness in a suit filed by Primus against EONCap directors except Ng Wing-Fai (its own representative on the board) regarding the offer by Hong Leong Bank Bhd (HLB) to buy the entire assets and liabilities of EONCap.
When Primus’ lead counsel Datuk Loh Siew Cheang questioned Tiong yesterday, he suggested that the HLB offer was an “extraordinary opportunity”.
“I would say it is an opportunity, not an extraordinary opportunity ,” Tiong responded.
Primus, which owns a 20.2% stake in EON Cap, is suing for RM1.11bil in damages as it believes that EON Cap directors have not acted in the best interests of the bank with regards to the sale deal.
It is objecting the sale because it believes the price offered by HLB is “too low”.
Primus had bought its stake at RM9.55 per share, which is much lower than HLB’s cash offer of RM7.30 per share.
The EONCap board has gone ahead and tabled the offer to shareholders for approval at an earlier EGM, which saw 97% of EON Cap’s shareholders supporting HLB’ offer.
The deal cannot be sealed as it is pending the court’s decision.
HLB has set Nov 30 as its deadline for EON Cap to obtain all the relevant approvals for its offer.
Yesterday was the sixth day of the trial which began on Sept 20.
The hearing continues from Oct 20 to Oct 22, with Rin Kei Mei, another major shareholder of EONCap, expected as the next witness.
EON Cap told the stock exchange yesterday that the High Court Judge had also given further dates in addition to these, fixed on Oct 27, 28 and Nov 4.
Rin has a 15.4% stake in EON Cap.
EON Cap’s largest shareholder is Hong Kong’s Primus Pacific Partners Ltd, which has a 20.2% stake. Primus (M) is its Malaysian unit.
By YVONNE TAN
yvonne@thestar.com.my
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