RETAIL BANKING | Tony Chua, Malaysia

Regulator backs Hong Leong's $1.7bln EON Cap acquisition

HLBB also earned approval from the Minister of Finance to acquire subsidiaries of EON Cap.

EON Capital Bhd (EON Cap) has received the green light from the Government to enter into an agreement for the proposed RM5.06bln ($1.7 billion) takeover by Hong Leong Bank Bhd (HLBB).

In a statement to Bursa Malaysia, it said it received a letter of approval dated Aug 3 from Bank Negara informing it of the approvals granted on July 26 by the Minister of Finance Inc.

HLBB in a separate statement to the stock exchange also said it received the Minister of Finance approval via the central bank for the proposed takeover deal. Among other approvals, HLBB said it also gained the nod from the Minister of Finance to acquire the subsidiaries of EON Cap, including EON Bank Bhd, EONCap Islamic and MIMB Investment Bank Bhd, pursuant to Section 29 of the BAFIA.

HLBB is required to finalise the position of MIMB by Dec 31 in line with the central bank’s policy which prohibits a domestic banking group from holding two investment bank licences, it added.

EON Cap will table the RM5.06bln offer from HLBB to shareholders at an EGM on Aug 19.

View the full story in the Malaysian Star.

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