TRADING SUSPENDED SINCE JULY 2024
Shareholders also voted on two resolutions aimed at restoring Great Eastern’s free float and the trading resumption of the insurer’s shares on the Singapore Exchange (SGX), with both resolutions passed.
Trading in shares of Great Eastern has been suspended since July last year, after its free float fell below 10 per cent following an offer by OCBC to acquire an 11.56 per cent stake at S$25.60 apiece in May 2024.
“As GEH’s parent, OCBC has supported GEH’s proposal to resolve the 11-month trading suspension of its shares at today’s extraordinary general meeting,” the bank said.
Great Eastern will proceed to carry out a one-for-one bonus issue of shares so as to allow it to satisfy the minimum free float of 10 per cent required under the listing rules to resume trading on SGX.
As part of the process for the bonus issue, shareholders will be invited to elect whether to receive ordinary shares, which will be listed and traded on SGX or Class C non-voting shares, which will not be listed or traded.
OCBC said it will elect to receive Class C non-voting shares under Great Eastern’s bonus issue. These shares are entitled to dividends and other distributions, and will be earnings accretive to OCBC.
The bank added it “would not convert these newly-created Class C non-Voting shares on and after the fifth anniversary of the issuance as it would result in GEH losing its free float again”.
Great Eastern said it will separately inform shareholders of the timetable of the bonus issue through announcements on SGXNET, while shareholders who wish to receive ordinary shares do not need to take any action.
The insurer has contributed an average of about S$700 million annually in net profit to OCBC over the past 11 years, which translates to an average of about 15 per cent of OCBC’s annual net profit over this period.
