KUALA LUMPUR, Feb 4 (Reuters) - Some major shareholders of Malaysian bank EON Capital will ask for a meeting to appoint new independent board members to consider a takeover offer from larger rival Hong Leong Bank, a newspaper reported on Thursday.
EON Capital, one of Malaysia's smallest banks, had on Tuesday rejected a $1.45 billion buyout offer from Hong Leong Bank, hurting EON's shares and ratings.
'By installing new independent directors, it is hoped that Hong Leong Bank's offer will be tabled for shareholders' consideration and approval,' The Star quoted an unnamed source close to the deal as saying.
'The new board may not come up with a different view. But what matters is this -- if the offer is within the range of fair consideration, then the board should put it up to shareholders vote.'
Hong Leong's offer, which valued EON at 1.4 times book or at the lower end of recent bank mergers in Malaysia, has lapsed, though analysts said they did not rule out a buyout.
EON Capital's major shareholders are expected to file a notice on Friday to call for the meeting, the report said.
EON has a fragmented shareholding structure consisting of five substantial owners, including Hong Kong-based private equity fund Primus Pacific Partners.
The shareholders will also ask Hong Leong Bank to extend or renew its takeover offer for EON Capital, according to the report.
EON Capital was not immediately available for comment. (Reporting by Liau Y-Sing; Editing by Valerie Lee) ((y-sing.liau@thomsonreuters.com; Reuters Messaging: y-sing.liau.reuters.com@reuters.net; +603 2333 8083)) Keywords: EONCAP/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
EON Capital, one of Malaysia's smallest banks, had on Tuesday rejected a $1.45 billion buyout offer from Hong Leong Bank, hurting EON's shares and ratings.
'By installing new independent directors, it is hoped that Hong Leong Bank's offer will be tabled for shareholders' consideration and approval,' The Star quoted an unnamed source close to the deal as saying.
'The new board may not come up with a different view. But what matters is this -- if the offer is within the range of fair consideration, then the board should put it up to shareholders vote.'
Hong Leong's offer, which valued EON at 1.4 times book or at the lower end of recent bank mergers in Malaysia, has lapsed, though analysts said they did not rule out a buyout.
EON Capital's major shareholders are expected to file a notice on Friday to call for the meeting, the report said.
EON has a fragmented shareholding structure consisting of five substantial owners, including Hong Kong-based private equity fund Primus Pacific Partners.
The shareholders will also ask Hong Leong Bank to extend or renew its takeover offer for EON Capital, according to the report.
EON Capital was not immediately available for comment. (Reporting by Liau Y-Sing; Editing by Valerie Lee) ((y-sing.liau@thomsonreuters.com; Reuters Messaging: y-sing.liau.reuters.com@reuters.net; +603 2333 8083)) Keywords: EONCAP/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.