Great Eastern Holding

[money]

https://www.channelnewsasia.com/singapor...te-4325816

Delist offer. Nice

[money]

But offer price looks ridiculously low compared to embedded value. Feels to me like a lowball offer

[weijian]

So, OCBC last offered 16sgd for the remaining 17% of shares 18 years ago and got ~5%, leaving about 12.1% public float. 6 months ago, there was a 0.5% bloc sale reducing public float to 11.6%, or 1.6% from trading suspension. Depending on IFA's opinion and recent BSL-BP case study, is there a merger arbitrage opportunity?

On reflection, minorities have been "making waves" recently in SGX (BWI and now GE). Nah, these has to be coincidences because the Offerer has mentioned that it is a "natural progression".

OCBC MAKES S$1.4 BILLION OFFER FOR GREAT EASTERN

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 2024.

OCBC Group Chief Executive Officer Ms Helen Wong said: “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.”

Ms Wong added: “This is not the first time that we are making an offer to increase our investment in Great Eastern – first in 2004, followed by 2006.

https://links.sgx.com/FileOpen/Media%20R...eID=802887