, Singapore
286 views
/Freepik

OCBC courts Great Eastern with S$1.4b offer

The bank plans to increase its investment beyond its current 88.44% stake.

Oversea-Chinese Banking Corporation Limited (OCBC) announced a S$1.4b voluntary unconditional general offer for the 11.56% stake in Great Eastern Holdings that it does not currently own. 

This move aims to bolster OCBC's business pillars of banking, wealth management, and insurance, whilst optimising its capital to enhance shareholder returns. 

The bank said in a media release the offer aligns with OCBC's corporate strategy to solidify its wealth management leadership position and capitalise on opportunities in the rapidly growing Asian market.

ALSO READ: Great Eastern witnesses 26% YoY profit surge in Q1’24

The offer price of S$25.60 represents a 36.9% premium over Great Eastern's last traded price of S$18.70 and premiums of 38.6%, 40.0%, and 42.4% over the one-month, three-month, and 12-month periods up to and including the last trading date of 9 May.

With this offer, OCBC intends to increase its investment in Great Eastern beyond its current 88.44% stake, with plans to delist the insurer from the SGX-ST.

“The Offer is a natural progression of OCBC’s strategy. We have moved intentionally to build up a strong wealth management franchise by hiring the best people and instituting best practices and processes, and raising our investment in Great Eastern. We have been looking at opportunities to best use our capital and believe the Offer allows us to deploy our resources into a key business that is expected to be earnings accretive to OCBC.” Helen Wong, OCBC Group CEO said in the statement.

 

Follow the links for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

ZA Bank’s Devon Sin on why Web3 is key to HK’s growth
The bank has expanded services to cater to stablecoin issuers and Web3 companies. 
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.
BCA sets benchmark in Indonesia’s microfinance sector
Innovative approaches reflect the bank’s commitment to pushing financial inclusion and fostering economic growth.