EON Capital Bhd (EONCap) (5266) hopes to conclude the proposed disposal of its assets and liabilities to Hong leong Bank Bhd by end-October this year.
Its board of directors, in a circular sent out to shareholders yesterday on Hong Leong's RM5.06 billion takeover offer, said this was a tentative timeline given that it was subject to court processes.
Its major shareholder Primus Pacific Partners in June filed a lawsuit against all the directors, except its own representative Ng Wing Fai, claiming Hong Leong's offer is illegal in structure and shouldn't be accepted.
Hong Leong recently said it would give EONCap till November 30 to accept its offer. EONCap's shareholders will meet on August 19 to decide on the deal.
If they vote in favour of it, the board can only accept the offer after the High Court has made its decision on whether it is legal.
In the circular, Ng disagreed with the other directors, saying shareholders should reject Hong Leong's implied offer price of RM7.30 a share.
Independent adviser Credit Suisse said the offer was not fair nor reasonable from a financial perspective.
Among reasons it cited was that the implied valuation statistics based on the offer price were significantly below those of similar past change-of-control transactions in the Malaysian banking sector, from the perspective of both price-to-earnings and price-to-book multiples.
"The offer price does not reflect a change-of-control premium nor value of potential synergies," it said.
By Adeline Paul Raj
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