Trading of Great Eastern shares to be suspended after OCBC closes takeover offer

SINGAPORE: The shopping and selling of Gigantic Eastern shares will likely be suspended from Monday (Jul 15) as less than 10 per cent of the listed firm is now owned by the public, the insurer announced unimaginative on Friday.

OCBC’s takeover provide for Gigantic Eastern closed on Friday, with the monetary institution holding more than 93 per cent of the firm.

As of 5.30pm on Friday, the monetary institution had 93.32 per cent of its total shares, up from the 88.44 per cent it before everything had two months within the past when it first announced a S$1.4 billion (US$1.03 billion) provide to buy the closing stake, in maintaining with a Singapore Alternate (SGX) submitting.

Underneath SGX suggestions, listed corporations must defend a free float – shares held by the public – of at least 10 per cent. If this threshold will not be any longer met, SGX may per chance per chance suspend shopping and selling of the firm’s shares.

In its provide doc, OCBC acknowledged that it wouldn’t clutch any steps to defend the itemizing space of Gigantic Eastern if the free float requirement will not be any longer met and shopping and selling is suspended.

For now, below the Companies Act, shareholders who did now not accept OCBC’s provide can maintain an ethical to require the monetary institution to buy them out at the provide be aware.

The monetary institution had supplied a be aware of S$25.60 per portion on May per chance per chance well also 10, which it talked about represented a top rate of 36.9 per cent over Gigantic Eastern’s then closing traded be aware of S$18.70.

Shares of Gigantic Eastern closed at S$25.80 on Friday.

In a assertion, the insurer talked about OCBC’s provide and the shopping and selling suspension would have not any impact on its industry and operations.

“There don’t appear to be any changes to policyholders’ insurance protection contracts with Gigantic Eastern,” talked about the insurer. “Policyholders will continue to be smartly served by Gigantic Eastern and its monetary representatives.”

Mr Khor Hock Seng, neighborhood chief executive officer of Gigantic Eastern, talked about: “Our monetary strength stays solid as before, and arguably stronger in step with the increased market worth of our shares following the announcement of the provide.”

On Jun 14, Ernst & Younger – the just monetary adviser appointed to the deal – described the phrases of OCBC’s provide as “no longer soft but inexpensive”. Nonetheless, it told Gigantic Eastern’s just administrators to recommend that minority shareholders accept the provide.

Later that day, OCBC talked about in a separate assertion that its provide be aware modified into closing and prolonged the deadline of its provide to Jul 12, disappointing shareholders.

In the following week, retail investor watchdog Securities Investors Affiliation Singapore (SIAS) posed questions to OCBC, asserting the monetary institution’s privatisation suppose for its insurance protection arm created a “pickle” for Gigantic Eastern’s smaller merchants.