Great Eastern gets further extension to Jan 24 to explore options for free float rule

GREAT Eastern Holdings now has until Jan 24, 2025, to explore options to comply with free float requirements under the Singapore Exchange’s (SGX) listing rules.

The insurer had made an application to SGX for a further extension of time to examine its options for complying with these requirements, as OCBC’s final shareholding in Great Eastern will be known only on Oct 23.

SGX has no objection to granting the extension, the insurer said on Monday (Oct 21).

In May, OCBC made a voluntary unconditional general offer of S$1.4 billion for the remaining 11.56 per cent stake in Great Eastern that it did not already own, with the aim to delist the insurer. The lender’s offer closed on Jul 12.

The proportion of shares in the hands of the public dropped to less than 10 per cent at the offer’s close, with OCBC and its concert parties garnering 93.52 per cent of the shares in the insurer.

This is lower than the 98.87 per cent shareholding that is required to trigger a compulsory acquisition of the shares that the bank does not already own. It also falls short of the 97.17 per cent level at which frontline regulator SGX Regulation may have directed Great Eastern to make an offer to delist.

The offer price of S$25.60 per share represents a 36.9 per cent premium over Great Eastern’s last traded price of S$18.70 before the offer announcement. It is, however, at a 30 per cent discount to the insurer’s embedded value per share of S$36.59 as at Dec 31, 2023.

Shares of Great Eastern have been suspended from trading since Jul 15.