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New Straits Times
5 days ago
- Business
- New Straits Times
Singapore's Great Eastern proposes delisting with OCBC's US$700mil offer
KUALA LUMPUR: Great Eastern is proposing to delist from the Singapore bourse by way of its largest shareholder Oversea-Chinese Banking Corp offering S$900 million (US$699.9 million) to buy the rest of the insurer it does not already own, according to joint statement and filings on Friday. Trading in Singapore-based Great Eastern's shares was suspended on July 15, 2024, after its free float fell below 10 per cent following an offer by OCBC to acquire an 11.56 per cent stake at S$25.60 apiece in May 2024. OCBC, Singapore's second-largest lender, had obtained acceptance from some shareholders and currently owns 93.72 per cent of Great Eastern. Under the new proposal, it is offering S$30.15 a share for the 6.28 per cent of the insurer's stock that it does not own. The latest offer is 17.8 per cent higher than last year's offer and values Great Eastern at S$14.27 billion. Independent financial adviser EY has assessed the offer is fair and reasonable and OCBC does not intend to revise it, according to the statement. It is OCBC's fourth attempt to fully acquire Great Eastern, following three bids since 2004. OCBC owns 93.72 per cent of the insurer, but that stake still falls short of the threshold needed to delist the company or launch a compulsory acquisition. Two companies controlled by Lee Thor Seng and his sons —members of the founding family behind OCBC — own nearly 2 per cent of Great Eastern, making them the second-largest shareholders, according to the insurer's annual report. Wong Hong Sun and Wong Hong Yen hold about 1 per cent, while Palliser Capital, which has criticised the latest takeover bid as unfair to shareholders, owns a 0.27 per cent stake, the report showed. Great Eastern proposed the delisting after assessing options available to resolve its shares trading suspension. The delisting offer is conditional upon at least 75 per cent backing from minority shareholders. OCBC will not be able to vote. If delisting cannot be achieved, Great Eastern would seek shareholders' approval on a second proposal to restore its free float by way of a one-for-one bonus issue comprising new listed shares with voting rights, and new non-listed shares without voting rights. According to the statement, OCBC intends to vote in favour of the bonus issue if the delisting proposal is not approved. OCBC would opt to receive the non-voting shares, which would dilute the bank's shareholding in Great Eastern to 88.19 per cent to help restore the free float and a resumption in trading.
CNA
5 days ago
- Business
- CNA
OCBC offers US$700 million for remaining 6.28% of insurer Great Eastern
Oversea-Chinese Banking Corp is now offering S$900 million (US$699.9 million) to buy the chunk of insurer Great Eastern that it does not already own, almost a year after failing to gain full control of the firm. Under the conditional exit offer announced on Friday (Jun 6), OCBC is offering S$30.15 for the 6.28 per cent of the insurer's stock that it does not own. This values Great Eastern at S$14.27 billion and paves the way for the insurer to be taken private by its owner. In May 2024, OCBC offered S$25.60 apiece for the 11.56 per cent stake in Great Eastern. The new exit offer reflects a 17.8 per cent premium from the previous bid. The final offer from Singapore's second-largest bank would mark its fourth attempt to fully acquire Great Eastern, following three previous bids since 2004. OCBC owns 93.72 per cent of the insurer, but that stake still falls short of the threshold needed to delist the company or launch a compulsory acquisition. Two companies controlled by Lee Thor Seng and his sons - members of the founding family behind OCBC - own nearly 2 per cent of Great Eastern, making them the second-largest shareholders, according to the insurer's annual report. Wong Hong Sun and Wong Hong Yen hold about 1 per cent, while Palliser Capital, which previously criticised the latest takeover bid as unfair to shareholders, owns a 0.27 per cent stake, the report showed. Trading in Great Eastern's shares was suspended on Jul 15, 2024, after its free float fell below 10 per cent. OCBC currently has a 93.72 per cent stake in Great Eastern. The offer, to go through, requires a minimum 75 per cent backing from minority shareholders. If the delisting is not approved, shareholders would then be voting on a proposal to resume trading in the insurer's shares.
Straits Times
23-05-2025
- Business
- Straits Times
Great Eastern gets another extension to June 8 to announce plan to restore free float
Great Eastern has until Jun 8 to announce its finalised proposal to comply with listing rules, its bourse filing on May 23 indicated. PHOTO: ST FILE Great Eastern gets another extension to June 8 to announce plan to restore free float SINGAPORE - Great Eastern Holdings has been granted yet another extension of time to comply with free float requirements under the Singapore Exchange's (SGX) listing rules. The insurer now has until Jun 8 to announce its finalised proposal to comply with listing rules, its bourse filing on May 23 indicated. It was previously granted an extension in January 2025, and in October 2024. Great Eastern said it has been exploring various options to formulate a proposal to meet with the requirements which can address the interests of stakeholders, and has made 'significant progress in formulating a proposal'. It will issue an announcement to update shareholders on the finalised proposal 'shortly', no later than Jun 8, it added. Shares of Great Eastern have been suspended from trading since July 2024, after the counter lost its free float following a takeover bid by its majority shareholder OCBC. Last May, OCBC made a voluntary unconditional general offer of $1.4 billion for the remaining 11.56 per cent stake in Great Eastern that it did not already own, with the aim to delist the insurer. At the close of the offer in July 2024, the bank held 93.52 per cent of the insurer, falling short of the shareholding it needed to delist Great Eastern, or to compulsorily acquire the rest of the shares. In January, it was reported that OCBC's chief executive Helen Wong met with Mr Wong Hong Sun, his brother Hong Yen, as well as representatives of Mr Lee Thor Seng and his family, who are long-time shareholders of Great Eastern with a combined 3 per cent stake. The offer was deemed 'not fair but reasonable' by the independent financial adviser for the deal. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
