Latest news with #GreatEasternHoldings
CNA
08-07-2025
- Business
- CNA
Great Eastern may resume trading after shareholders reject delisting proposal
SINGAPORE: Great Eastern Holdings (GEH) could resume trading after shareholders voted against a proposal to delist its stock at an extraordinary general meeting (EGM) on Tuesday (Jul 8). The insurer said only 63.49 per cent of minority shareholders voted in favour of the delisting proposal, falling short of the 75 per cent approval needed to go ahead with the proposal. Majority shareholder OCBC and its concert parties abstained from voting. In June, the bank had offered S$30.15 apiece for the 6.28 per cent stake in Great Eastern, one of the largest insurance firms in Singapore and Malaysia, that it does not own. It also then said it had no intention to make another offer to buy the rest of Great Eastern in the future in the event shareholders opted to not delist the insurer from the Singapore bourse. With the vote for a delisting resolution having fallen through, OCBC said in a statement on Tuesday that its conditional exit offer had lapsed, ending its effort to take the 117-year-old insurer private. It also reiterated that it does not intend to make further offers for Great Eastern "in the foreseeable future". The bank pointed out that in October 2024, it had increased its stake in Great Eastern to 93.72 per cent, achieving its goal of capturing "benefits from further operational synergies" with the insurer and attaining a "higher share of its value". "Regardless of the outcome of the EGM, we are satisfied with this level of economic interest," said OCBC, referencing its June statement. "OCBC will continue to accelerate the synergistic work with GEH as we grow as one integrated financial services group." TRADING SUSPENDED SINCE JULY 2024 Shareholders also voted on two resolutions aimed at restoring Great Eastern's free float and the trading resumption of the insurer's shares on the Singapore Exchange (SGX), with both resolutions passed. Trading in shares of Great Eastern has been suspended since July last year, 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. "As GEH's parent, OCBC has supported GEH's proposal to resolve the 11-month trading suspension of its shares at today's extraordinary general meeting," the bank said. Great Eastern will proceed to carry out a one-for-one bonus issue of shares so as to allow it to satisfy the minimum free float of 10 per cent required under the listing rules to resume trading on the Singapore Exchange (SGX). As part of the process for the bonus Issue, shareholders will be invited to elect whether to receive ordinary shares, which will be listed and traded on SGX or Class C non-voting shares, which will not be listed or traded. OCBC said it will elect to receive Class C non-voting shares under Great Eastern's bonus issue. These shares are entitled to dividends and other distributions, and will be earnings accretive to OCBC. The bank added it "would not convert these newly-created Class C on-Voting shares on and after the fifth anniversary of the issuance as it would result in GEH losing its free float again". Great Eastern said it will separately inform shareholders of the timetable of the bonus issue through announcements on SGXNET, while shareholders who wish to receive ordinary shares do not need to take any action. The insurer has contributed an average of about S$700 million annually in net profit to OCBC over the past 11 years, which translates to an average of about 15 per cent of OCBC's annual net profit over this period.
Free Malaysia Today
08-07-2025
- Business
- Free Malaysia Today
Great Eastern holders vote on US$704mil OCBC delist plan
Great Eastern Holdings Ltd's independent directors have advised shareholders to accept Oversea-Chinese Banking Corp's bid. (EPA Images pic) SINGAPORE : Oversea-Chinese Banking Corp's (OCBC) final attempt to fully control Great Eastern Holdings Ltd with its S$900 million (US$704 million) bid will be tested today, capping a two-decade quest by Singapore's second-largest lender to take over the insurer. OCBC is just 6.28% shy of complete ownership, and Great Eastern's minority shareholders will vote at an extraordinary general meeting (EGM) whether to delist the 117-year-old firm with an improved bid from the bank. If rejected, OCBC's so-called 'exit offer' will lapse, paving the way for the insurer's shares to resume trading. Acquiring Great Eastern, one of the largest insurers in Singapore and Malaysia, will boost OCBC CEO Helen Wong's strategy to build an integrated financial services group that will better capture growth in the region's booming wealth management sector. The insurer has total assets of more than S$100 billion with 16 million-plus policyholders, complementing the bank's business. 'The transaction is to streamline the group structure and we also think it opens up the potential to manage group capital more efficiently,' said Jayden Vantarakis, head of equity research for Southeast Asia at Macquarie Capital. 'Still, a full takeover would have a minimal impact on earnings or strategy as OCBC is already in control,' he said. Trading in Great Eastern's shares has been suspended since July 2024 after OCBC failed to secure a sufficient level for a delisting or compulsory acquisition with last year's offer. While the bank raised its bid by 17.8% last month to S$30.15 a share, the price is still at a discount to the insurer's 2024 embedded value of S$38.08 per share. That metric has been used to value insurers elsewhere and has been cited by resistant minority shareholders urging a higher offer. Great Eastern's independent directors have advised shareholders to accept OCBC's bid, which has been described by the firm's financial adviser EY as 'fair and reasonable'. The insurer has contributed an average of about S$700 million a year in net profit to OCBC over the past 10 years, translating to an average of about 15% of OCBC's annual net profit over this period, the bank has said. 'While delisting Great Eastern has been a long-term goal for OCBC, the bank is satisfied with its 93.72% stake, regardless of the outcome of the EGM,' it said in a statement last month. 'OCBC does not intend to launch another offer in the foreseeable future,' it added.
Reuters
23-06-2025
- Business
- Reuters
Singapore's OCBC says no another offer for Great Eastern even if delisting proposal fails
June 23 (Reuters) - Oversea-Chinese Banking Corp ( opens new tab on Monday said that it has no intention to make another offer to buy the rest of Great Eastern ( opens new tab in the future in the event shareholders opted to not delist the insurer from the Singapore bourse. OCBC was responding to a media report saying that it still can propose to take Great Eastern private when its non-voting shares are due in five years if the latest delisting proposal by Great Eastern cannot be achieved in an EGM on July 8. OCBC, Singapore's second largest lender, said in a stock exchange filing that it has no intention to convert its non-voting shares to ordinary shares on or after five years as it would result in Great Eastern losing its free float again. OCBC would opt to receive the non-voting shares to help restore the free float and a resumption in trading of Great Eastern if the delisting proposal by the insurer is not achieved. Great Eastern on June 6 proposed to delist from the domestic bourse by way of its largest shareholder OCBC offering S$900 million ($696.27 million) to buy the rest of the insurer it does not already own. Trading in Singapore-based Great Eastern's shares was suspended on July 15, 2024, after its free float fell below 10% following an offer by OCBC to acquire an 11.56% stake at S$25.60 apiece in May 2024. OCBC had obtained acceptance from some shareholders and currently owns 93.72% of Great Eastern. "Delisting GEH is a long-term strategic goal of OCBC," OCBC said, referring Great Eastern as GEH. It said it is satisfied with its 93.72% economic interests since October 2024 regardless of the outcome of the EGM to vote on the proposed delisting on July 8. ($1 = 1.2926 Singapore dollars)
Business Times
22-06-2025
- Business
- Business Times
OCBC commits RM11 billion to support businesses in Johor-Singapore SEZ
[SINGAPORE] OCBC said on Sunday (Jun 22) that it has committed more than RM11 billion (S$3.3 billion) in financing to support businesses in the Johor-Singapore Special Economic Zone (JS-SEZ) since 2024. This was shared by the bank's group chief executive Helen Wong during a visit to Johor Menteri Besar Onn Hafiz Ghazi at his official residence in Saujana, Johor Bahru. She was joined by senior executives from OCBC. By end-2025, the group expects to provide at least another RM3 billion in financing for investments into various sectors including real estate, oil and gas, manufacturing and data centres. This will further catalyse local economic activities and cross-border investments in Johor and the JS- SEZ. Wong said OCBC is 'uniquely positioned' to support business growth and cross-border collaboration in the JS-SEZ thanks to its 'one group' strategy. Its 'one group' strategy brings together the capabilities of OCBC Bank, insurance subsidiary Great Eastern Holdings, private banking arm Bank of Singapore and its leasing and wealth management capabilities. The bank's history in Johor dates back to more than 100 years, Wong noted. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up OCBC Malaysia's first branch in Johor opened in 1917. There are now eight branches in the state, with a total of 38 across Malaysia. Said Wong: 'We are honoured to have this opportunity to explore with the Johor Menteri Besar how we can build on these solid foundations and leverage the full capabilities of the OCBC Group's extensive regional franchise to contribute to the success of the JS-SEZ.' Onn Hafiz said the group's financing commitment to the JS-SEZ 'reflects a strong endorsement of Johor's economic direction and investment potential'. 'We welcome this partnership and look forward to working closely with OCBC to unlock Johor's full potential as Asean's next economic powerhouse,' he said. Tan Chor Sen, CEO of OCBC Bank (Malaysia), noted that prior to the official signing of the JS-SEZ agreement in January this year, OCBC had taken 'proactive' steps in Malaysia to showcase the SEZ's potential to global investors. The bank had previously collaborated with the Menteri Besar of Johor as well as key stakeholders such as the Iskandar Regional Development Authority, Malaysian Investment Development Authority and Invest Johor for the JS-SEZ Trade and Investment Mission. 'By leveraging OCBC's extensive international presence, particularly in greater China, we aim to connect companies and their ecosystems with opportunities that drive growth and innovation,' he said.
Yahoo
09-06-2025
- Business
- Yahoo
Great Eastern given till Sept 30 to complete proposed transactions
Trading in GEH shares were suspended on July 15, 2024, when the company's free float fell below the regulatory 10%. Great Eastern Holdings (GEH) has been given till Sept 30 to complete the transactions proposed in its June 6 statement. On June 6, Oversea-Chinese Banking Corporation (OCBC) said it will support GEH's proposal to seek a delisting of the insurer's shares with a $0.9 billion conditional exit offer of $30.15 per share for the 6.28% GEH shares it does not own. OCBC's exit offer will require at least 75% of the total number of issued shares held by GEH's shareholders to vote in favour of a delisting resolution that GEH will table at an extraordinary general meeting (EGM) to be convened. If the delisting resolution is passed, GEH will be removed from Singapore Exchange S68's (SGX) Mainboard. Otherwise, the exit offer will lapse. In that instance, GEH will proceed to propose a 1-for-1 bonus issue resolution to satisfy the free float requirement. Under this resolution, new ordinary shares will be listed and carry voting rights. GEH will also create Class C non-voting shares which will not be listed and have no voting rights. Both classes of shares will be issued at no consideration from shareholders and will be entitled to the same dividends. Trading in GEH shares were suspended on July 15, 2024, when the company's free float fell below the regulatory 10%. GEH has been granted five extensions by the Singapore Exchange Securities Trading Limited (SGX-ST) to restore its public float. On Aug 2, 2024, GEH said it was granted an extension till Oct 23, 2024, to explore options to restore its public float. On Oct 21, 2024, the company said the SGX-ST had extended its deadline till Jan 24 this year. On Jan 24, GEH was given a further extension till May 25. On May 23, GEH said it was given a further extension of two weeks till June 8 to announce the finalised proposal. 5 mil; business climate expected to be 'challenging', says CEO Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click here
