Update EON Bank declares RM311m dividend, or 44.9c per share

KUALA LUMPUR: EON Bank Bhd has declared a dividend of RM311.94 million, translating into 44.9 sen per share, once it has received the approval from Bank Negara Malaysia.

HONG LEONG BANK BHD [] said on Friday, April 29 it has no objection to EON Bank Bhd declaring and paying dividend of RM311.94 million once it has received the approval from Bank Negara Malaysia.

The 44.9 sen is on top on the RM7.30 offer made by HL Bank in its proposed acquisition of the assets and liabilities of EON CAPITAL BHD [] at RM5.06 billion with no deduction for the payment of the proposed interim dividend.

It said that EON Cap had on Thursday accepted its offer in accordance with the terms and conditions set out in HL Bank’s letter of offer dated April 1, 2010

HL Bank and EON Cap also agreed that EON Cap/EON Bank shall submit the application to BNM for the proposed interim dividend.

“Either party may submit the application to the Securities Commission (“SC”) for the change in control of MIMB Investment Bank Bhd,” it said.

They agreed the the total liabilities at EON Cap company level less available cash at EON Cap company level liabilities shall not exceed RM14.1 million as at the completion date.

In a separate statement, EONCap said following HL Bank’s agreement to its conditions, once BNM’s and SC’s approvals for the BNM application and SC application respectively were obtained, the parties shall complete the transaction.

“HL Bank has also acknowledged that the net liabilities at EONCap company level shall not be more than RM14.1 million as at the completion date of the offer and that no further debts, expenses or liabilities shall be incurred or committed by EONCap without prior approval from HL Bank.

“Any net liabilities incurred or committed by EONCap in excess of RM14.1 million without the prior written approval of HL Bank shall not form part of the liabilities to be transferred to HL Bank pursuant to the offer,” it said. (source:theedgemalaysia.com)