Singapore’s OCBC offers $1 bln to fully take over insurer Great Eastern By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2024
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Source: Investing.com
- OCBC Offers to Buy Remaining Stake in Great Eastern: Oversea-Chinese Banking Corp (OCBC) proposed to acquire the remaining 11.56% stake in Great Eastern Holdings Ltd, aiming to bring the insurer fully under its ownership and delist it from the stock exchange.
- Offer Details: OCBC's offer amounts to S$1.4 billion ($1 billion), valuing each share of Great Eastern at S$25.60, which represents a significant premium of nearly 37% over the insurer's last closing price.
- Delisting Plans: Following the completion of the deal, OCBC intends to delist Great Eastern from the Singapore Exchange (SGX).
- Strategic Move: OCBC, having been the majority shareholder in Great Eastern for over two decades, sees this takeover as a step to enhance synergies with the region's largest insurer by assets and market capital.
- Financial Impact: The acquisition is expected to be earnings accretive for OCBC, with Great Eastern historically contributing around 15% to the bank's net profit over the past decade.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
