EON to distribute $593.9mn balance cash proceeds among shareholders

The group announced a dividend of $1.71 per share that constitutes the first tranche of the total cash proceeds.

EON Capital Bhd (EON Cap) says the balance cash proceeds of RM1.79 billion ($593.8 million) from Hong Leong Bank Bhd's (HLB) acquisition of EON Bank Group will be distributed back to the entitled shareholders of EON Cap via a proposed capital repayment exercise in due course.

The company had on Monday announced that it had declared a special tax-exempt dividend of RM5.16 ($1.71) per share amounting to RM3.57bil ($1.18 billion) which forms the first tranche of the total cash proceeds to be distributed back to entitled shareholders of EON Cap.

The proposed capital repayment was still subject to the confirmation of the High Court in accordance with Section 64 of the Companies Act, 1965, EON Cap told Bursa Malaysia.

To recap, HLB had completed the acquisition of EON Bank from EON Cap for RM5.06bil ($1.68 billion) or RM7.30 ($2.42) a share.

View the full story in The Malaysian Star.