Great Eastern plans to delist through higher OCBC-backed bid: Bloomberg

[SINGAPORE] Great Eastern is considering options that include a plan to delist via an offer by OCBC, which will be higher than its original offer in May last year, Bloomberg reported on Thursday (Jun 5).

The offer from OCBC for the insurer is expected to be fair and reasonable in accordance with Singapore’s listing guidelines, and is conditional upon delisting being approved, Bloomberg said, citing people with knowledge of the matter.

Another option is for Great Eastern to keep its shares listed through an issuance of new shares with conditions to all shareholders, Bloomberg reported, citing sources who asked not to be identified discussing non-public matters.

Great Eastern has until Jun 8 to announce its finalised proposal to comply with listing rules. Its shares 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 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.

The offer was deemed “not fair but reasonable” by the independent financial adviser for the deal.

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.