Great East Holders vote on the OCBC 704 million dollar deletion plan

OCBC is only shy 6.28 % of full ownership, and the shareholders of minority at Great Eastern will vote at an unusual public meeting if they will put the 117 -year -old company with an improved offer from the bank. If it is rejected, the so -called OCBC “exit” will end, which paves the way for the insurance company’s shares to resume trading.

Getting Great Eastern, one of the largest insurance companies in Singapore and Malaysia, will enhance Helen Wong, OCBC’s executive strategy in building an integrated financial services set that will get better growth in the region’s wealth management sector in the region. The insurance company has Total assets Of more than $ 100 billion in Singapore, with 16 million document holders-they create the bank’s business.

“The transaction is to simplify the group’s structure, and we also believe that it opens the possibility of the group’s capital more efficiently,” said Jayden Vantercice, head of stock research in Southeast Asia, Macquari Capital. However, the full acquisition will have a little effect on profits or strategy because OCBC is already control.

Trading in the shares of Great Eastern has been suspended since July 2024 after OCBC failed to secure a sufficient level to gain deletion or mandatory with the offer last year. While the bank Arise Its width of 17.8 % last month to $ 30.15 Singapore for the share, the price is still a reduced price on the compact value of the insurance company 2024 amounting to $ 38.08 Singapore for the share.

This scale was used to evaluate insurance companies elsewhere and was cited by the resistance Minority shareholders Use a higher offer.

Independent managers at Great Eastern advised the shareholders to accept the OCBC offer, which the company’s financial advisor described as “fair and reasonable”.

The bank said that the insurance company has contributed an average of about $ 700 million annually from a net profit to OCBC over the past ten years, and translated into about 15 % of OCBC’s annual profit during this period.

While the Great East was the long -term goal for OCBC, the bank is satisfied with its 93.72 % share, regardless of the results of the EGM, as he said in a statement last month. He added that OCBC does not intend to launch another presentation in the foreseeable future.