New Hong Leong offer for EON Capital seen

Analyst said selection of 7 new directors can revive HLB's bid to acquire EON Cap.

It is anticipated that Hong Leong Bank Bhd (HLB) will make another offer for EON Capital Bhd's (EON Cap) assets and liabilities after Bank Negara has approved the appointment of the latter's seven new directors, according to analysts.

An analyst with a bank-backed stockbroking firm believes the potential appointment of the new directors will pave the way for a re-exploration of HLB's takeover offer or new merger and acquisition (M&A) proposals from other players.

Besides HLB, it is speculated that Affin Holdings Bhd and Alliance Financial Group Bhd may be keen to bid for EON Cap.

"Nonetheless, our take remains that for any credible proposals to be accepted, it is best to assess it from the offeror’s financial strength and potential offer price," the analyst said.

She noted that there were still hurdles to overcome – primarily getting approval from Bank Negara on the appointment of the directors before moving on to the next stage.

"Secondly, while we believe HLB would not mind re-tabling its proposal, we believe the previous offer price of RM7.10 ($2.15) per EON Cap share will stay," she said.

View the full story in The Star.