EON Bank to proceed with expansion despite takeover saga

EON Bank Bhd is going ahead with its expansion plans this year despite being caught in the middle of a takeover saga.

“We will open new branches and go ahead with our investments planned for the year,” EON Bank group CEO Datuk Michael Lor said.

The bank is a wholly-owned subsidiary of EON Capital Bhd, whose single largest shareholder Primus (M) Sdn Bhd is suing EON Cap directors who are believed to be in favour of a sale of the group to Hong Leong Bank Bhd.

Primus is said to be against the sale of EON Cap to HLB partly because it had bought its 20.2 per cent stake in the banking group at a higher price of US$3.1324 per share compared to HLB's offer of US$2.3944 per share.

The suits are ongoing.