OCBC and its concert parties have garnered 93.52 per cent of shares in Great Eastern Holdings (GEH) as at the close of the offer on Friday (Jul 12).
This is lower than the 98.87 per cent shareholding that is required to trigger a compulsory acquisition of shares that OCBC does not already own in the insurer.
It also falls short of the 97.17 per cent level at which frontline regulator SGX RegCo may have directed Great Eastern to make an offer to delist.
Trading in GEH’s shares will be suspended with effect from 9 am on Jul 15, as the number of shares in public hands has dipped below the 10 per cent free float threshold.
However, existing GEH shareholders who have yet to accept OCBC’s offer can still do so, as the bank and its concert parties hold more than 90 per cent of the insurer’s shares.
A notice will be sent to these shareholders by Jul 24, following which a three-month period in which they can exercise the right to encash their shares will kick in.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In a media release on Friday night, GEH stressed that the suspension of trading in its shares will “have no impact whatsoever” on its insurance business and operations.
There will also be no changes to policyholders’ insurance contracts with GEH, said group chief executive officer Khor Hock Seng.
“Our financial strength remains solid as before, and arguably stronger based on the increased market value of our shares following the announcement of the offer,” he added.
OCBC had in May made a voluntary unconditional general offer of S$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.
This translated to an offer price of S$25.60 per share, which represented a 36.9 per cent premium over Great Eastern’s last traded price of S$18.70, prior to the offer announcement.
However, it was at a 30 per cent discount to the insurer’s embedded value per share of S$36.59 as at Dec 31, 2023.
In June, the independent financial adviser to the deal, professional services firm EY, determined that OCBC’s offer was “not fair but reasonable”.
Shares of OCBC closed 0.5 per cent or S$0.08 higher at S$15.28 on Friday. Those of Great Eastern rose 0.7 per cent or S$0.17 to S$25.80, prior to the announcement.
