The insurer announced late on Friday that trading in Great Eastern shares will be suspended starting on Monday ( Jul 15 ), with less than 10 % of the listed company now being owned by the general public.
OCBC’s acquisition offer , for Great Eastern closed on Friday, with the lender holding more than , 93 per cent of the business.
As of 5.30pm on Friday, the bank had 93.32 per cent of its total shares, up from the 88.44 per cent it originally had two months ago when it first announced a , S$ 1.4 billion ( US$ 1.03 billion ) offer , to buy the remaining stake, according to a Singapore Exchange (SGX ) filing.
Listered firms must maintain a complimentary float – stock held by the people – of at least 10 % in accordance with SGX regulations. If this level is never met, SGX does suspend dealing of the company’s shares.
If the free fly necessity is met and investing is suspended, OCBC stated in its offer letter that it would not take any steps to keep the list status of Great Eastern.  ,  ,
For the time being, owners who rejected OCBC’s offer will have a right to demand that the lender pay the sell price.  ,
The lender claimed that the share price of S$ 25.60 per share on May 10 represented a 36.9 % advanced over the then-current S$ 18.70 amount of Great Eastern, which the bank had previously offered.
Shares of Great Eastern closed at S$ 25.80 on Friday.
In a statement, the employer said OCBC’s present and the buying suspension would have no effect on its company and procedures.  ,
” There are no modifications to consumers ‘ coverage deals with Fantastic Eastern”, said the employer. Excellent Eastern and its economic staff may continue to provide consumers with excellent service.
According to Mr. Khor Hock Seng, group CEO of Great Eastern,” Our financial strength is still strong as it was before, and probably even more so as a result of the increase in the market value of our shares since the offer was made public.”
On Jun 14, Ernst &, Young – the independent financial adviser appointed to the bargain – described the terms of OCBC’s give as ,” no fair but acceptable”. It did, however, advise majority shareholders to consult with Great Eastern’s independent managers.
In a separate statement released later that evening, OCBC announced that its offer price was last and that its final meeting would be July 12, disappointing owners.
In the following week, retail investor watchdog Securities Investors Association Singapore ( SIAS ) posed questions to OCBC, saying the bank’s privatisation bid for its insurance arm created a “dilemma” for Great Eastern’s smaller investors.