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 ).
Late on Friday after working hours, Reuters requested comment from Great Eastern, but the company did not respond right away. Neither party’s independent directors or minority shareholders may agree to the recommendation be made.
OCBC, Singapore’s next biggest lender, announced in May an offer to buy the 11.56 per cent interest in Great Eastern that it does not own at S$ 25.60 per share, or a 37 per cent prime over Great Eastern’s last traded stocks rate before that statement.
According to Ernst &, Young, Great Eastern stocks have been trading above the present price, and shareholders may therefore want to sell their stock in the open business.
” This offer price is final” , , OCBC , said on Friday. The offer’s closing time has been extended to July 12, 2024.  , OCBC , does not want to improve the offer amount or further extend the concluding date”.
As of Thursday’s tight,  , OCBC , said it had received scholarships for 1.74 million stock, or 0.37 per share of Great Eastern stock, raising its interest in Great Eastern to 89.01 per share.
Great Eastern stock ended Friday 0.27 per cent lower at S$ 26.10 prior to the presentations, giving it a market price of around S$ 12.35 billion.