Stock Name: EONCAP
Company Name: EON CAPITAL BHD
Research House: MIDF
KUALA LUMPUR: MIDF Equity Research is maintaining its Neutral call on EON CAPITAL BHD [] but adjust the target price to RM7.10 (from RM7.20), pegged at 12.7x PER on FY10 earnings per share. It said on Wednesday, March 31 there is a "high chance of the deal materialising this round". Hong Leong Bank had on Tuesday, returned with the same cash offer for EON Capital Bhd-- RM7.10 a share or RM4.92 billion -- for the latter's entire assets and liabilities. If If it does not receive EON Cap's confirmation on or before April 5, the offer will lapse. The research house said that Bank Negara had on March 25, approved seven new directors to the board of EON Cap. These new directors are in favour of Rin Kin Mei and with their appointment effective on March 26, in compliance with BAFIA. " We believe that the new offer this round will pass through the board's stage to be tabled for consideration and approval by the shareholders of EON Cap. "With four directors, Tan Sri Syed Zainol, Rodney Gordon, Datuk Dr Mohd Shahari and Yeo Kar Peng resigned from the Board, parties friendly to Rin Kin Mei sitting on the Board will comprise of more than the required 50% to pass through the offer for shareholders' approval," it said. MIDF Research said the offer price for EON Cap shares remain at RM7.10 per share which equates to 1.4x P/BV based on Eon Cap's financials as at end December 2009. "We believe that the Hong Leong Bank has not offered a higher price as the business of EON Cap is similar to Hong Leong Bank, with focus on retail lending and SME loan and that the acquisition will only increase its scale of operations with no other enhancements seen," it said.
Company Name: EON CAPITAL BHD
Research House: MIDF
KUALA LUMPUR: MIDF Equity Research is maintaining its Neutral call on EON CAPITAL BHD [] but adjust the target price to RM7.10 (from RM7.20), pegged at 12.7x PER on FY10 earnings per share. It said on Wednesday, March 31 there is a "high chance of the deal materialising this round". Hong Leong Bank had on Tuesday, returned with the same cash offer for EON Capital Bhd-- RM7.10 a share or RM4.92 billion -- for the latter's entire assets and liabilities. If If it does not receive EON Cap's confirmation on or before April 5, the offer will lapse. The research house said that Bank Negara had on March 25, approved seven new directors to the board of EON Cap. These new directors are in favour of Rin Kin Mei and with their appointment effective on March 26, in compliance with BAFIA. " We believe that the new offer this round will pass through the board's stage to be tabled for consideration and approval by the shareholders of EON Cap. "With four directors, Tan Sri Syed Zainol, Rodney Gordon, Datuk Dr Mohd Shahari and Yeo Kar Peng resigned from the Board, parties friendly to Rin Kin Mei sitting on the Board will comprise of more than the required 50% to pass through the offer for shareholders' approval," it said. MIDF Research said the offer price for EON Cap shares remain at RM7.10 per share which equates to 1.4x P/BV based on Eon Cap's financials as at end December 2009. "We believe that the Hong Leong Bank has not offered a higher price as the business of EON Cap is similar to Hong Leong Bank, with focus on retail lending and SME loan and that the acquisition will only increase its scale of operations with no other enhancements seen," it said.
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