Stock Name: EONCAP
Company Name: EON CAPITAL BHD
Research House: AMMB



AmResearch Sdn Bhd is maintaining its view that the EON Capital Bhd (EONCap) takeover by Hong Leong Bank Bhd (HLBB) will likely proceed.

The fair value for EON Cap remains at RM7.30 per share, it said in its research note today.

HLBB and EON Cap have announced that HLBB had extended the deadline for EON Cap to accept its offer to acquire the latter's entire assets and liabilities to April 30 next year from Nov 30, 2010.

AmResearch said, there is no surprise, as it had been widely expected following news that the High Court had provided further dates for the hearing of Primus (M) Sdn Bhd''s first petition, which stretches to March next year.

This is in relation to the petition filed by Primus, EON Cap's major shareholder, essentially on grounds that selected directors had neither performed their fiduciary duties nor acted in the best interest of the company.

Primus also felt the proposed takeover is not structured in the best interest of shareholders.

"We still think that EON Cap's acceptance is pending, only on one main condition, which is the outcome of the lawsuit.

"This is because we consider EON Cap to have fulfilled most of the conditions set by HLBB in order to comply with the latter's Nov 30, 2010 timeline," AmResearch said. -- Bernama