OCBC: No Further Bids for Great Eastern Planned

Oversea-Chinese Banking Corp (OCBC) has declared it won’t make another offer to acquire the remaining shares of Great Eastern, even if the insurer’s delisting plan fails. This announcement follows the insurer’s proposal to leave the Singapore Exchange and the bank’s existing significant stake.

OCBC’s Stance

OCBC has clarified its stance on purchasing the remaining shares of Great Eastern. The bank responded to recent reports. These reports suggested a potential future offer contingent on a shareholder vote against delisting.

The bank stated in a filing that it does not intend to convert non-voting shares into ordinary shares. Such a conversion, after five years, would cause Great Eastern to lose its free float again. OCBC will accept the non-voting shares to help restore free float if delisting does not proceed.

“Delisting GEH is a long-term strategic goal of OCBC,”

—OCBC Representative

Approximately 93.72% of Great Eastern is currently held by OCBC. This majority stake was secured in October 2024, with the bank expressing satisfaction with its position regardless of the delisting vote outcome. In 2023, global M&A activity totaled over $3 trillion. (Reuters 2024)

The Delisting Proposal

Great Eastern proposed delisting from the Singapore stock exchange on June 6. OCBC offered S$900 million (US$696 million) to buy the remaining shares it did not own. Trading in Great Eastern shares was halted on July 15, 2024.

This suspension was a consequence of the free float dropping below 10%. This occurred after OCBC offered to acquire an 11.56% stake. The offer was at S$25.60 per share in May 2024.

The outcome of the delisting proposal will be decided at an EGM on July 8.