EONCap Shareholders say Yes for sale of EON Bank
Filed Under (Business News) by Webmaster on 28-09-2010
Tagged Under : eon bank, eon capital, Hong Leong Bank, Primus
EON Capital Bhd (EONCap) has received 97% of the voting shares at the EGM called to consider the proposed acquisition of the group by Hong Leong Bank Bhd for RM5.06bil cash, says chairman Gooi Hoe Soon.
“The proposed disposal was carried with 97% voting for the resolution and 3% against it,” he told reporters yesterday after the group’s EGM.
Gooi said shareholders representing 436 million shares or 63% of EONCap’s total share capital attended the EGM and voted on the resolutions.
Gooi Hoe Soon said shareholders representing 63% of total share capital attended the meeting.
He also said representatives of Primus (M) Sdn Bhd, the single largest stakeholder of EONCap which holds 20% of the group, had walked out of the EGM before the voting started.
Primus is currently fighting a case in court to stop the proposed acquisition by Hong Leong Bank, citing that it was not lawful and not in the best interests of the group.
When asked to comment on that matter, Gooi declined to say anything as it was now with the High Court.
The hearing for the case continues for the rest of this week and from Oct 20 to 22.
Gooi also said the second resolution for a special dividend received the approval of 97.23% or 424.836 million shares while 2.77% or 12.088 million shares were against.
The group told Bursa Malaysia yesterday that as set out in ordinary resolution 1 on the proposed disposal, which had been passed by the shareholders of the company at the EGM held on Sept 27, the board of EONCap had been duly empowered by the shareholders of the company to decide, at its sole discretion, whether or not to accept Hong Leong Bank’s offer, subject to the final decision of the High Court of Malaya in relation to the petition filed by Primus on June 21, being obtained.
Accordingly, it said the decision of the board on the acceptance of the offer would only be made and announced at a later date after the final decision of the High Court on the petition had been obtained.
“Please note that to-date, the court hearing for the petition is still on-going,” it said.
Meanwhile, EONCap’s wholly-owned subsidiary EON Bank Bhd has received a writ of summons in relation to a claim by the plaintiff Karunanithy a/l Neelakandan for inter alia damages amounting in aggregate to RM21.8mil.
In a filing with Bursa Malaysia, EONCap said the claim was for an alleged malicious prosecution of the plaintiff by EON Bank.
“The summons-in-chambers was heard on Sept 24 and the judge has fixed Oct 21 for mention for the parties to file all necessary affidavits,” it said.
It said the company was of the view that the said claim was not expected to result in any material and adverse impact on the operations, business and financial position of EON Bank and EONCap.
“In any event, EON Bank has engaged legal counsel to resist the application and to defend the legal suit,” it added.
