Great Eastern Holdings is set to resume trading on the Singapore Exchange after shareholders rejected a proposal to delist the insurer, Channel News Asia reported.
At an extraordinary general meeting on 8 July, only 63.49 percent of minority shareholders supported the delisting, falling short of the 75 percent required.
OCBC, the insurer’s majority shareholder, and its concert parties abstained from voting.
The bank had offered S$30.15 per share for the 6.28 percent of Great Eastern it did not own, and had stated it would not make another offer if the delisting was blocked.
Following the vote, the bank confirmed its conditional exit offer had lapsed and reiterated it has no plans for further offers “in the foreseeable future.”
OCBC raised its stake in Great Eastern to 93.72 percent in October 2024, a level it said would allow for greater operational synergies and a larger share of the insurer’s value.
The bank said it is satisfied with its current holding and will continue integrating Great Eastern into its broader financial services group.
Trading in Great Eastern shares has been suspended since July 2024 after the public float fell below the 10 percent minimum required by SGX.
This came after OCBC acquired an 11.56 percent stake in May 2024 at S$25.60 per share.
Shareholders also passed two resolutions to restore the company’s public float and resume trading.
To do this, Great Eastern will carry out a one-for-one bonus issue of shares.
Investors can choose to receive either ordinary shares, which will be listed and traded, or Class C non-voting shares, which are not listed but carry dividend rights.
OCBC has opted for the non-voting shares, which contribute to earnings without affecting the trading float.
The bank said it will not convert these shares into voting shares after the five-year lock-up, to avoid a drop below SGX’s minimum free float.
Great Eastern will announce the bonus issue timeline via SGXNET. Shareholders who want ordinary shares do not need to take any action.
The insurer has contributed an average of about S$700 million annually to OCBC’s net profit over the past 11 years, accounting for roughly 15 percent of the group’s total earnings.
Featured image: Edited by Fintech News Singapore, based on image by thanyakij-12 via Freepik
