KUALA LUMPUR: AmResearch expects further delays in HONG LEONG BANK BHD []s takeover of EON CAPITAL BHD [] but maintains its view that it will likely proceed.

"Our fair value for EON Cap remains at RM7.30 a share," it said in a research note on Tuesday, Oct 5.

The latest development was Primus (Malaysia) Sdn Bhd's move to file an originating summons with the High Court of Malaya at Kuala Lumpur over the EON Capital Bhd EGM on Sept 27.

Primus had on Monday sought to have the motion for an adjournment of the EGM as "a valid motion".

The main reliefs sought are essentially that Primus' motion for an adjournment of the EGM held on Sept 27 is a valid motion, and the act of the chairman of the EGM in refusing to put the motion for adjournment is unlawful. Consequently, Primus is seeking a declaration that all the proposed resolutions passed at the EGM are null and void.

To recap, EON Cap announced that at the EGM, 97.0% of the shareholders (representing 423.8 million shares) present and voting (436.9mil), voted for the proposed disposal of EON Cap's assets and liabilities to Hong Leong Bank (HLBB).

"Assuming that Primus (holding 140 million shares) had participated in the voting process, and assuming the vote is against the takeover, then we estimate that 73.5% of shareholders present and voting (with total number of shares present and voting including Primus' assumed to be 576.9 million) would have voted for the proposed disposal.

"If we were to use EON Cap's total number of issued shares of 693 million, then shareholders with 423.8 million, which voted for the proposed disposal, would work out to be effectively 61.1% of total shares," it said.

AmResearch said EON Cap's board of directors is now empowered to decide whether or not to accept the Hong Leong Bank offer, which is now subject to mainly to a final decision of the court on the earlier petition filed by Primus. Further dates for the hearing of the petition are now on Oct 27 and 28 and Nov 4.

Meanwhile, Hong Leong Bank announced that shareholders had approved the takeover at the EGM held on Monday. Hong Leong Bank's timeline for the offer is still maintained at Nov 30.