Chia: HLB Excited Over Mandate to Acquire EON Cap

October 07 2010

By : Tee Lin Say, The Star

PETALING JAYA: Hong Leong Bank Bhd (HLB) group managing director Yvonne Chia says the bank is excited over the positive mandate from its shareholders to acquire EON Capital Bhd (EON Cap), and will remain disciplined with its plans.

HLB shareholders approved the resolution for the proposed acquisition of EON Cap during its EGM on Monday.

“Shareholders of both EON Cap and HLB have voted clearly on their intention to sell EON Cap to HLB. The case is now in court and beyond us,” Chia told reporters during the official opening of HLB’s Kepong branch yesterday. Yvonne Chia ... ‘The case is now in court and beyond us.’

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EON Cap’s largest shareholder, Primus (M) Sdn Bhd, has resorted to taking further legal action against the company in its latest attempt to thwart a takeover by HLB.

On Monday, Primus filed a suit with the High Court asking that resolutions reached at a shareholders meeting on Sept 27 be declared null and void.

When asked whether HLB would be patient in waiting out on the acquisition, Chia declined comment. HLB has given EON Cap a Nov 30 deadline to accept its offer. It has already extended its offer once before.

HLB also launched a new branch in Jalan Ipoh yesterday. So far this year, HLB has opened four new branches. It will be opening six more branches before the end of its financial year in June 30, 2011.

HLB is spending RM20mil to open a total of 10 new branches and another RM20mil to refurbish existing branches.

“Under the proposed mass rapid transit plans, we want to put our outlets in those strategic locations. Not every location needs to be big. It can just be an ATM centre or an outlet. Banking today is about people. I believe if we give the right level of service, the sales will take care of itself,” said Chia.