Oversea-Chinese Banking Corporation’s (OCBC) O39 offer for Great Eastern Holdings G07 closed at 5.30pm on July 12. OCBC now holds 93.52% of GEH. On June 25, OCBC’s ownership crossed 90%. As a result, GEH shares will be suspended on July 15.
Accordingly, the offer is no longer open for acceptance and any acceptances received after 5.30pm Singapore time on July 12 will be rejected. However, shareholders who have not accepted the offer can still require the offeror to acquire their shares at the offer price pursuant to Section 215(3) of the Companies Act.
This says the transferee or offeror must, within one month from the date of the transfer, give notice to holders of the remaining shares that have not been tendered, that they can still tender their shares, and OCBC will have to accept them.
The date of transfer refers to the date on which OCBC’s shareholding crossed 90%, on June 25. On July 24, OCBC will likely be announcing that GEH shareholders can still accept the offer at $25.60 per share and this offer will be open for three months from July 24.
OCBC group CEO Helen Wong unveiled a One Group strategy last year. GEH is likely to be part of that strategy. Interestingly, analysts have pointed out that OCBC does not charge GEH any bancassurance fees as these are not indicated in its annual report.
In 2019, United Overseas Bank U11 and Prudential renewed a bancassurance agreement for 15 years for $1.5 billion over the course of the 15 years.
Shares in OCBC, GEH and UOB closed at $15.28, $25.80 and $33.05 respectively on July 12.
