primus-buys-20-of-eon-capital

Primus buys 20% of Eon Capital

Primus is either second time lucky or accepting a consolation prize in its bid for a piece of the Malaysian banking sector.
February 05, 2008
Hong Kong-based private equity firm Primus Pacific Partners has agreed to buy 20.2% of Malaysian bank Eon Capital for M$1.34 billion $415 million in order to take advantage of the long-term growth prospects and high margins available in Malaysia's banking industry.

Primus will pay Hicom, a subsidiary of Malaysian carmaker DRB-Hicom, M$9.55 for each Eon share, it said in a statement. The price equals a 58% premium to EonÆs closing price of M$6.05 on January 31, the last traded price before the announcement.

One Kuala Lumpur-based banking analyst argues that Primus is ôover-paying for an unimpressive franchiseö.

But, Jeroen Nieuwkoop, managing director of Primus, is excited by its potential. He reckons this is ôthe...
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