Affin seeks central bank's nod for EON takeover

Lender willing to offer $1.58bln worth of combined cash and shares.

Affin Bank Bhd has sought the green light from Bank Negara to make a general offer (GO) for EON Capital Bhd.

It is believed that Affin is offering between RM7.40 ($2.24) and RM7.60 ($2.30) per share.

The application was submitted recently by its international adviser BNP Paribas, on behalf of Affin Bank, said a source.

"After various discussions, Affin has decided to undertake a GO for EON Cap. It has also explained how it plans to fund the acquisition which could potentially cost it some RM5.2bil ($1.58bln)," said the source.

While it is not clear how Affin plans to fund the purchase, sources say it would involve a combination of cash and shares. "But chances are its cash outlay will be higher because there will be more shareholders who may opt for the cash route. That means it will need to raise funds or gear up for the exercise," said the source.

View the full story in The Star.