The independent directors of Singapore's Great Eastern have been advised to recommend that minority shareholders accept a S$1.4 billion ($1.03 billion) offer from the insurer's top investor Oversea-Chinese Banking Corp (OCBC).
Ernst & Young, the financial adviser to the independent directors, said the terms of the offer were "reasonable" and advised them to recommend the deal, Great Eastern said in a statement on Friday (Jun 14).
Great Eastern did not immediately respond to request seeking comment from Reuters late Friday after working hours on whether its independent directors would accept the advice and recommend minority shareholders to accept the offer.
OCBC, Singapore's second biggest lender, announced in May an offer to buy the 11.56 per cent stake in Great Eastern that it does not own at S$25.60 per share, or a 37 per cent premium over Great Eastern's last traded shares price before that announcement.
Ernst & Young noted that Great Eastern shares have been trading above the offer price and that shareholders might thus wish to sell their stock in the open market.
"This offer price is final," OCBC said on Friday. "The closing date of the offer is extended to Jul 12, 2024. OCBC does not intend to increase the offer price or further extend the closing date."
As of Thursday's close, OCBC said it had received acceptances for 1.74 million shares, or 0.37 per cent of Great Eastern shares, raising its stake in Great Eastern to 89.01 per cent.
Great Eastern shares ended Friday 0.27 per cent lower at S$26.10 prior to the announcements, giving it a market value of around S$12.35 billion.
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Ernst & Young, the financial adviser to the independent directors, said the terms of the offer were "reasonable" and advised them to recommend the deal, Great Eastern said in a statement on Friday (Jun 14).
Great Eastern did not immediately respond to request seeking comment from Reuters late Friday after working hours on whether its independent directors would accept the advice and recommend minority shareholders to accept the offer.
OCBC, Singapore's second biggest lender, announced in May an offer to buy the 11.56 per cent stake in Great Eastern that it does not own at S$25.60 per share, or a 37 per cent premium over Great Eastern's last traded shares price before that announcement.
Ernst & Young noted that Great Eastern shares have been trading above the offer price and that shareholders might thus wish to sell their stock in the open market.
"This offer price is final," OCBC said on Friday. "The closing date of the offer is extended to Jul 12, 2024. OCBC does not intend to increase the offer price or further extend the closing date."
As of Thursday's close, OCBC said it had received acceptances for 1.74 million shares, or 0.37 per cent of Great Eastern shares, raising its stake in Great Eastern to 89.01 per cent.
Great Eastern shares ended Friday 0.27 per cent lower at S$26.10 prior to the announcements, giving it a market value of around S$12.35 billion.
Continue reading...