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EON Capital Bhd’s (EON Cap) independent adviser Credit Suisse Securities (M) Sdn Bhd used four methodologies to arrive at its opinion that the RM5.06bil takeover offer from Hong Leong Bank Bhd (HLB) for the former was “not fair from a financial perspective.”

In a circular to shareholders on Wednesday, Credit Suisse said in evaluating the offer price of RM7.30 per share, it used the:

·Acquisition Premium Analysis to compare the offer price to the historical market price and trading activity of EON Cap;

·Trading Companies Analysis to compare the offer price with the valuation statistics of other major banks in Malaysia;

·Precedent Transaction Analysis to compare the offer price with the valuation statistics of precedent transaction involving banks in Malaysia; and

·Dividend Discount Analysis to evaluate the intrinsic value of EON Cap reflecting its growth and profitability in the future as well as its capital structure and cost of capital.

In summarising the results of its methodologies, Credit Suisse said among other findings, the offer price was below the transaction multiples paid in the precedent transactions in the Malaysian banking sector and also below the implied equity value of EON Cap – taking into account the long-term growth perspective of the company under its existing business strategies.

Under the Dividend Discount Analysis for example, it said the method indicated that the implied equity valuation range of EON Cap was between RM8.25 and RM9.25 per share, or between RM5.72bil and RM6.76bil.

Primus Pacific Partners Ltd, which is EON Cap’s largest shareholder with a 20.2% stake, has long been known to be against the proposed offer. Primus had bought its stake at RM9.55 per share, which is much higher compared with HLB’s cash offer of RM7.30 per share.

Primus last month filed a legal suit against the directors of EON Cap and three entities controlled by Rin Kei Mei and Tan Sri Tiong Hiew King who are major shareholders in the banking group (and willing sellers) for RM1.11bil in damages as it believed that the price for EON Cap should be much higher than that offered by HLB.

Despite this and despite the advice of Credit Suisse, EON Cap is still calling for an EGM to table the offer.

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Delaying the listing of Focus Point Holdings Bhd is to clear uncertainties, says the Securities Commission (SC), but it is mum on whether it is satisfied with the company’s explanation.

The country’s largest professional eye-care chain postponed its listing at the last minute on Tuesday following an anonymous complaint. It has refuted all of the allegations in the complaint.

Neither Bursa Malaysia nor the SC would comment on the new listing date for Focus Point or whether any action is being taken to address the complaint.

An SC spokesperson said the company’s listing was delayed to allow the company to address the complaint and inform the market about its impact, if any.

“The complaint creates uncertainties in the market for Focus Point’s shares and until the company is given an opportunity to address the matters raised in the complaint, it would not be beneficial for both the company and investors for the trading of the company’s shares to commence.

“As the complaint relates to matters which existed when the company’s prospectus was issued, it may affect an investor’s decision to invest and the price he is willing to invest at,” the SC said in a statement to Business Times yesterday.

A Bursa Malaysia spokesperson said the listing procedures would resume and the listing date would be confirmed after the company received the green light from the authorities.

Focus Point group president and chief executive officer Datuk Liaw Choon Liang was unavailable for comment.

The anonymous complaint cited three allegations.

These include the company not having enough qualified optometrists or opticians, contact lenses being prescribed by unqualified personnel and the company having only 27 equipment known as K-metres against its total outlet number of 144.

Focus Point was due to raise RM16.1 million from its initial public offering, of which RM7.74 million would be used to fund its local expansion plans to increase the number of stores to 200 by end-2011 from 144 now.

Its shares were planned to be listed on Bursa Malaysia’s ACE Market on Tuesday, but the company deferred the listing just an hour before the opening bell.

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MEASAT Global Network Systems Sdn Bhd (MGNS) has launched a takeover of MEASAT GLOBAL BHD [] to acquire all the ordinary shares of 78 sen each not already held by MGNS at RM4.20 per share.

“The board has deliberated on the Notice and does not intend to seek an alternative person to make a take-over offer for the offer shares,” said Measat Global on Wednesday, July 28.

Measat Global said the board has appointed AmInvestment Bank Bhd as the independent adviser to advise the independent directors and holders of the offer shares on the reasonableness of the offer.

MGNS is the single largest shareholder in Measat Global with 59.56%. The controlling shareholder in MGNS is billionaire T. Ananda Krishnan.

Measat Global will resume trading on Thursday.

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