OCBC exit offer is final; it does not plan to launch another offer in the foreseeable future
[SINGAPORE] OCBC said it has “no intention” to convert its Class C non-voting shares in Great Eastern to ordinary shares when they come up for conversion in five years.
In a statement on Monday (Jun 23), the lender said it does not intend to convert the Class C shares “on or after the fifth anniversary of the first issuance” as it would result in Great Eastern losing its free float again.
“OCBC is electing for the Class C non-voting shares at Great Eastern’s request to help Great Eastern to meet the free-float requirement and the resumption of trading,” it said.
The statement was made in response to media reports about how OCBC can still propose the privatisation and delisting of Great Eastern by converting these non-voting shares to ordinary, voting shares.
Early in June, OCBC made a conditional exit offer at S$30.15 per share for the 6.28 per cent stake in Great Eastern it does not own, in a bid to delist the insurer amid the latter’s trading suspension.
If the delisting resolution fails at the insurer’s extraordinary general meeting (EGM) on Jul 8, Great Eastern will propose a resolution to satisfy the free-float requirement.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
This includes a one-for-one bonus issue resolution comprising new ordinary shares and newly-created Class C non-voting shares.
All shareholders will receive the bonus shares unless they elect to receive the Class C non-voting shares; OCBC said it intends to opt to receive the Class C non-voting shares.
The offer comes more than a year after OCBC first made a privatisation bid for Great Eastern through a voluntary unconditional general offer at S$25.60 per share.
In the Jun 23 statement, OCBC affirmed that delisting Great Eastern is its long-term strategic goal, and added that the lender is “satisfied with its 93.72 per cent economic interests of Great Eastern since October 2024”, regardless of the outcome of the upcoming EGM.
“OCBC has already stated in its announcement on Jun 6 that its exit offer is final, and it has no intention to launch another offer in the foreseeable future,” the lender said.
Shares of OCBC closed 0.3 per cent higher at S$15.94 on Monday before the release of the statement.
Copyright SPH Media. All rights reserved.
