Veni, Vidi, Vici!
Hong Leong crossed the banking Rubicon and short of a 'yeah' from shareholders at the forthcoming EON EGM, has taken over EON Capital and its jewel in the crown, EON Bank.
EON Capital Bhd's board of directors has accepted Hong Leong Bank Bhd's offer to acquire the former's assets and liabilities for a cash consideration of RM5.06bil or RM7.30 per share.
MIMB Investment Bank Bhd reported that having taken cognizance of Credit Suisse's opinion, the board accepted the offer.
MIMB also said EON Capital's board member Ng Wing Fai's views would also be included in a circular to shareholders for the upcoming EGM.
Ng, whose Primus Pacific Partners (HK) Ltd held a 20.2% stake in EON Capital, has expressed disagreement with the board over the offer.
The investment bank said after taking into consideration Credit Suisse's opinion, the advice of the international adviser Goldman Sachs and all relevant aspects of the offer, the board has resolved that the proposed disposal was in the best interest of the bank.
It said the board would table a resolution at the EGM on the proposed disposal as well as the proposed distribution of the cash proceeds to shareholders.
MIMB said the proposed distribution of the cash proceeds arising from the disposal would be done in two parts - a special dividend estimated to be about RM3.30 billion based on EON Capital's audited financial statements as at December 31, 2009 and, a capital reduction exercise amounting to RM1.76bil.
So, those poor chaps at EON Bank will have to bear and grind their teeth as Hong Leong personnel take over their much prized posts in time.
As the say, Winner takes all!
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