KUALA LUMPUR: EON CAPITAL BHD [] said the board of directors had secured the additional payment of RM311.9 million after much negotiations with HONG LEONG BANK BHD [] (HL Bank).
EONCap chairman Gooi Hoe Soon said on Friday, April 29 the directors intended to manage this transaction fairly and equitably to all parties concerned, especially enhancing shareholders value for all shareholders.
'The additional interim dividend payment is in addition to the offer price of RM5.06 billion and was secured after much negotiation with Hong Leong Bank, and we're pleased with the result,' he said.
EONCap announced on Friday that EON Bank Bhd has proposed a dividend of RM311.94 million, translating into 44.9 sen per share, but to be paid to its parent, EONCap.
The proposed interim dividend was a surprise when EONCap announced to Bursa Malaysia early Friday it had accepted HL Bank's offer of RM5.06 billion or RM7.30 per share.
EONCap also said HL Bank confirmed it had no objection to EON Bank Bhd declaring and paying the interim net dividend upon receipt''of the approval from Bank Negara Malaysia.
EONCap announced on Friday it had accepted HL Bank's offer to acquire the entire assets and liabilities of EONCap for RM5.06 billion following a High Court decision on Thursday which dismissed a petition filed by Primus (Malaysia) Sdn Bhd which had opposed the takeover.
The transaction, when completed, which will result in Hong Leong Bank becoming the fourth'' largest banking group in Malaysia, had earlier been approved by a majority of EONCap shareholders who had passed a resolution in favour of the move at EONCap's EGM in September 2010.
Shareholders' approval had been subject to a final decision being made by the High Court which has now dismissed the petition by Primus with costs.
In the latest development, Primus had on Friday served on EONCap's'' solicitors a notice of appeal to the Court of Appeal. The move was to appeal against the decision of the High Court handed down on Thursday.
On the interim net dividend of RM311.9 million subject to the approval from Bank Negara Malaysia, Gooi said HL Bank had agreed to the interim dividend payment not being deducted from its offer price.
'The directors intend to manage this transaction in a manner that is fair and equitable to all parties concerned, especially enhancing shareholders value for all shareholders,' he said.
Gooi said EONCap believed all stakeholders would be well-served by this move which would see the enlarged entity not only become a larger banking group with total assets in excess of RM140 billion 'but it shall also be a stronger force in the regional banking arena.'
Gooi said that this move was also in line with the ongoing consolidation of the banking industry in the country and the boards of both banks will collaborate to achieve a successful transition.
'EONCap's solid foundation has been built on developing close relationships with our employees and customers, coupled with in-depth knowledge of the local market and core business segments. It goes without saying that our performance particularly in recent years has been due to the integrated effort of a strong team of people who have done good work for the Bank.'
'We are also making every effort to ensure that the transition will have minimum impact on our employees and customers by making it as smooth as possible,' he said.
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EONCap chairman Gooi Hoe Soon said on Friday, April 29 the directors intended to manage this transaction fairly and equitably to all parties concerned, especially enhancing shareholders value for all shareholders.
'The additional interim dividend payment is in addition to the offer price of RM5.06 billion and was secured after much negotiation with Hong Leong Bank, and we're pleased with the result,' he said.
EONCap announced on Friday that EON Bank Bhd has proposed a dividend of RM311.94 million, translating into 44.9 sen per share, but to be paid to its parent, EONCap.
The proposed interim dividend was a surprise when EONCap announced to Bursa Malaysia early Friday it had accepted HL Bank's offer of RM5.06 billion or RM7.30 per share.
EONCap also said HL Bank confirmed it had no objection to EON Bank Bhd declaring and paying the interim net dividend upon receipt''of the approval from Bank Negara Malaysia.
EONCap announced on Friday it had accepted HL Bank's offer to acquire the entire assets and liabilities of EONCap for RM5.06 billion following a High Court decision on Thursday which dismissed a petition filed by Primus (Malaysia) Sdn Bhd which had opposed the takeover.
The transaction, when completed, which will result in Hong Leong Bank becoming the fourth'' largest banking group in Malaysia, had earlier been approved by a majority of EONCap shareholders who had passed a resolution in favour of the move at EONCap's EGM in September 2010.
Shareholders' approval had been subject to a final decision being made by the High Court which has now dismissed the petition by Primus with costs.
In the latest development, Primus had on Friday served on EONCap's'' solicitors a notice of appeal to the Court of Appeal. The move was to appeal against the decision of the High Court handed down on Thursday.
On the interim net dividend of RM311.9 million subject to the approval from Bank Negara Malaysia, Gooi said HL Bank had agreed to the interim dividend payment not being deducted from its offer price.
'The directors intend to manage this transaction in a manner that is fair and equitable to all parties concerned, especially enhancing shareholders value for all shareholders,' he said.
Gooi said EONCap believed all stakeholders would be well-served by this move which would see the enlarged entity not only become a larger banking group with total assets in excess of RM140 billion 'but it shall also be a stronger force in the regional banking arena.'
Gooi said that this move was also in line with the ongoing consolidation of the banking industry in the country and the boards of both banks will collaborate to achieve a successful transition.
'EONCap's solid foundation has been built on developing close relationships with our employees and customers, coupled with in-depth knowledge of the local market and core business segments. It goes without saying that our performance particularly in recent years has been due to the integrated effort of a strong team of people who have done good work for the Bank.'
'We are also making every effort to ensure that the transition will have minimum impact on our employees and customers by making it as smooth as possible,' he said.
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