EON Cap’s board accepts Hong Leong acquisition bid

Bid serves "best interest" for EON Cap after mulling on recommendations of Credit Suisse, Goldman Sachs.

Malaysian banking group EON Capital Bhd. said its board of directors accepted a buyout offer of nearly 5.1 billion ringgit ($1.56 billion) from rival Hong Leong Bank Bhd. in a deal expected to create the country's fourth-largest banking group by assets.

EON Capital, the holding company for EON Bank Bhd., said Friday that after considering the opinion of its advisers Credit Suisse and Goldman Sachs, the board decided the takeover was in the company's "best interest." The offer will be presented to shareholders for approval.

Earlier this year, EON Capital rejected a 4.92-billion-ringgit ($1.48 billion) bid from Hong Leong Bank.

The board plans to return the cash proceeds from the sale of the company's assets and liabilities to shareholders through a special dividend and capital repayment exercise, EON Capital said in a stock exchange filing.

View the full story in the Wall Street Journal.