Hong Leong’s Takeover Bid Off The Tables
Hong Leong Bank reiterated that it is not extending its RM7.10 per share offer despite requests by EON Capital shareholders. “With Hong Leong Bank now walking away from its plan to takeover EON Capital’s assets and liabilities and making its stance clear to the public, EON Capital’s shareholders have foregone an opportunity to exit at RM7.10 per share,” said an Affin Research analyst quoted by Dow Jones Newswire. This is likely to put downward pressure on the stock to RM6.30 to RM6.40, the level prior to the takeover euphoria. Affin has a Reduce call on EON Capital with unchanged TP of RM6.65.

AMMB 9M09 Net Profit Up 12.6% On Faster Loans Growth
AMMB Holdings 9M09 net profit increased 12.6% from a year ago to RM766.9m on faster loan growth. During the period, net loans had grown 14.1% as a result of the strong growth in syndication and bridging finance loans, the bank said. The quality of the loans made also improved as net non-performing loans fell 0.98% to 1.8% from a year ago, a result of its disciplined focus on “targeted” lending. The bank’s management added that it was repositioning the balance sheet for rising interest rates, after Bank Negara Malaysia’s governor this month signaled that interest rates will not stay at the current low level for too long.

CIMB May IPO In Thailand In June
CIMB Group Holdings could launch an IPO of 35m new shares worth US$136m in the Stock Exchange of Thailand in June. “It should be in June that the parent firm’s shares will be listed on the Thai market. We have to wait until the first-quarter earnings come out and seek approval from the SEC,” CIMB Thai Bank president Subhak Siwaraksa told reporters who travelled to KL with the bank at the weekend. CIMB owns 94% of CIMB Thai Bank and the IPO would make it the first foreign company to have a dual listing in Bangkok. The plan is subject to approval by CIMB shareholders and authorities in the two countries, including the SEC, the Thai market regulator.