HLBB cannot maintain offer to EONCap

 

HONG Leong Bank Bhd (HLBB) says it is unable to consider the request to maintain its RM4.9 billion acquisition offer for EON Capital Bhd (EONCap) from two major shareholders.

"The EONCap board had rejected the Offer and HLBB has not been informed of any change in the board's position," HLBB said in a filing to Bursa Malaysia today.

HLBB said it had received a letter on Feb 5, 2009, from Kualapura (M) Sdn Bhd and Lintang Emas Sdn Bhd informing that two companies had on the same date called for an extraordinary general meeting (EGM).

The meeting will be held on Feb 22 for the EONCap shareholders to deliberate on the appointment of eight new directors to the EONCap board.

Kualapura and Lintang Emas have requested for HLBB to maintain the offer to EONCap for a period of 14 days after the date of the EGM.

HLBB obtained approval to enter into talks with EONCap's two major shareholders, businessman Rin Kei Mei and Sarawak billionaire Tan Sri Tiong Hiew King. Both owned a combined indirect stake of 31.7 per cent held via Kualapura and Lintang Emas with 15.4 per cent and RH Development Sdn Bhd with 16.3 per cent.

On Feb 2, EONCap rejected HLBB's offer to acquire its entire assets and liabilities, saying that the latter has significantly undervalued the company.

Khazanah Nasional Bhd, which holds a 10 per cent stake, has agreed to sell its stake to HLBB. The Employees Provident Fund (EPF) was reported to be prepared to sell its 10.7 per cent stake.

Other shareholders of EONCap include Hong Kong-based private equity fund Primus Pacific Partners which held an equity stake of 20.2 per cent. - BERNAMA