EON Capital Bhd's shareholders will get a special tax-exempt dividend of RM5.16 per share tomorrow following the completion of the acquisition of its assets and liabilities by Hong Leong Bank Bhd (HLBB) for RM5.06 billion.

Chairman Gooi Hoe Soon said securing the interim dividend payment of RM312 million had been part of EONCap's negotiations, in addition to the offer price of RM5.06 billion to enhance the return on shareholders' investment.

'The balance of the cash proceeds of RM1.79 billion from the disposal would be distributed back to shareholders via a non-taxable capital repayment now pending a high court confirmation on July 18.

'The capital repayment is expected to be completed by year-end,' he told reporters after the company's annual general meeting today.

The acquisition of the assets and liabilities of EONCap by HLBB was completed on May 6, following the full remittance of the RM5.1 billion sale consideration to EONCap.

Gooi said EONCap was expected to be delisted by the end of the third quarter or early fourth quarter of this year.

He said over 5,800 EONCap staff would be absorbed into HLBB, following the integration of the systems and the transformation of EON Bank branches nationwide next month.

Meanwhile, director Sharif Lough said Rin Kei Mei, one of the largest shareholders of EONCap has decided not to seek for reappointment in the board.

'At present, the board remained intact with the exceptional of Rin Kei Mei, who has has decided not to seek reappointment and as we move forward, the board will review the number of members from time to time,' Lough said. -- Bernama