OCBC is making a big move—again. Singapore’s second-largest bank is offering S$900 million ($699.9 million) to buy out the remaining 6.28% stake in Great Eastern that it doesn’t already own. This offer values the insurer at S$14.27 billion.
This is OCBC’s fourth attempt to take full control of Great Eastern since 2004. And it’s their boldest yet—offering S$30.15 per share, a 17.8% premium over last year’s offer. They already own 93.72% of the company after earlier acquisitions, but they need more to delist the stock.
So, What Does This Mean for Regular Investors?
If you’re holding shares in Great Eastern, you’ve probably already had your trading frozen. The stock was suspended in July 2024 after its public float dropped below 10%. Now, OCBC wants to finish what it started—take Great Eastern private.
For minority shareholders, this is their chance to exit at a higher price. But not everyone’s buying into it. Palliser Capital, which owns a small 0.27% stake, called the deal “unfair.” Others like EY (Ernst & Young) say it’s fair and reasonable.
The offer needs 75% approval from minority shareholders to go through. And OCBC can’t vote, which makes this a true public test.
Also Read HSBC’s Power Player Mark Tucker Walks Away — And AIA Just Got Its Secret Weapon Back!
Why Does OCBC Care So Much?
Great Eastern isn’t just any company. It’s one of Singapore’s oldest insurers, and a crown jewel in OCBC’s long-term plans. Full control would let OCBC streamline its business, reduce regulatory headaches, and better integrate insurance with banking.
But here’s the kicker—even owning over 93% isn’t enough to force a delisting or a compulsory buyout. The Lee family (OCBC founders) and other small shareholders hold just enough to block it. That’s corporate chess at its finest.
And If the Deal Fails?
Plan B is on standby. If delisting fails, Great Eastern plans to restore its public float. How? By giving out bonus shares—one listed (with voting rights) and one unlisted (without). OCBC would take the non-voting shares, reducing its stake to 88.19%, which could let trading resume.
It’s like offering candy to get kids back in line—creative, but still a workaround.
Final Word
Whether this $700M move is the end of the story or just another chapter in a two-decade saga, one thing’s clear: OCBC isn’t letting go of Great Eastern without a fight.
Also Read RBI Cuts Rates Big: ₹2.5 Lakh Crore Liquidity Boost Unleashed to Rescue Growth!
