Hong Leong takeover of EON Bank is unconditional
Filed Under (Business News) by Webmaster on 06-05-2011
Tagged Under : eon bank, Hong Leong Bank
The takeover of EON Capital Bhd (EON Cap) by Hong Leong Bank Bhd has become unconditional as Bank Negara has approved EON Bank Bhd’s interim dividend .
EON Cap in its filing to Bursa Malaysia yesterday said the central bank has given its approval for EON Bank to declare and pay a net interim dividend amounting to RM312mil to EON Cap.
“As such, the offer has become unconditional and it is now pending completion. Any further developments relating to the offer will be announced in due course,” it said.
This dividend payment would indirectly raised the offer price from Hong Leong to RM7.75 per share from RM7.30 per share previously.
Meanwhile, Hong Leong in separate filing said it had completed its issuances of Tier 2 subordinated debt (sub debt) of RM1bil and non-innovative Tier 1 stapled securities (NIT-1 stapled securities) of RM1.4bil respectively yesterday.
The sub debt is rated AA2 while the NIT-1 stapled securities is rated AA3 by RAM Rating Services Bhd.
Hong Leong group managing director Yvonne Chia was pleased with the results and the efforts by the joint lead managers.
“The success of the transaction is also a reflection of investors’ confidence in Hong Leong Bank, and its positive outlook going forward,” she said.
