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Primus's EON Capital rejects HLB offer

  • Christina Kautzky
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Primus Pacific Malaysian investee EON Capital Bhd has rejected a MYR4.92 billion ($1.4 billion) takeover offer from Hong Leong Bank, run by Malaysian billionaire Quek Leng Chan.

“The offer is not in the interests of EON Capital and its shareholders based on, among other things, the purchase consideration,” the company said in a statement to the Kuala Lumpur stock exchange.

Primus Pacific owns 20.2% of EON, the country’s seventh-largest banking group, a stake it picked up for MYR9.55 ($2.79) per share. HLB’s offer amounted to MYR7.10 ($2.07) per share. “This undervalued acquisition bid does not account for EON’s significant recent projected growth,” EON Chairman Syed Anwar Jamalullail was quoted as saying.

Primus has bought itself some time to court other offers, although at the moment it is understood HLB is the only potential buyer in the mix. Mulpha International, a Malaysian property developer, has been reported to have requested permission to begin talks, but there has been no formal expression of interest.

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