OCBC backs Great Eastern delisting bid with S$0.9b exit offer at EGM

The offer is priced at $23.52 per share.

Oversea-Chinese Banking Corporation Limited (OCBC) announced it will support Great Eastern Holdings Limited’s (GEH) proposal to delist from the Singapore Exchange (SGX) through a conditional exit offer of $0.7b (S$0.9b). 

The offer, priced at $23.52 (S$30.15) per share, targets the remaining 6.28% of GEH shares not already owned by OCBC.

GEH shares have been suspended from trading since 15 July 2024, after its public float fell below the required 10%. 

The proposed delisting aims to resolve the suspension and provide an exit route for minority shareholders who have been unable to trade their shares for nearly a year.

The offer is subject to approval by at least 75% of independent shareholders voting at an extraordinary general meeting (EGM), to be convened by GEH. 

OCBC, as a major shareholder, will not participate in the vote. If approved, GEH will be delisted and shareholders who accept the offer will be paid. 

Those who do not accept will continue to hold shares in an unlisted entity. If the delisting resolution is rejected, the exit offer will lapse.

In that event, GEH will seek shareholder approval for an alternative proposal to restore the free float. 

This includes a 1-for-1 bonus issue comprising ordinary shares and Class C non-voting shares, issued at no cost. All shareholders will receive the bonus shares unless they opt for the non-voting class. 

Both share classes will carry equal dividend rights, but only ordinary shares will be listed and carry voting rights.
OCBC has stated it will vote in favour of the bonus issue and, at GEH’s request, will take up the Class C non-voting shares. 

This move will reduce OCBC’s voting stake in GEH to 88.19%, potentially restoring the free float and enabling trading to resume. 

However, OCBC will retain 93.72% of GEH’s economic interest, including dividend rights.