Great Eastern Resumes Trading After Delisting Proposal Fails 63.49% Support

Great Eastern Holdings Ltd. will resume trading on the Singapore Exchange after its delisting proposal failed to secure the necessary shareholder support. The insurer's shares had been suspended since July 2024, following Oversea-Chinese Banking Corp.'s (OCBC) inability to gain sufficient backing for a delisting or compulsory acquisition. The proposal required a 75% approval from minority shareholders, but only 63.49% voted in favor, leading to its rejection at the extraordinary general meeting held on July 8.

OCBC, which has owned the majority of Great Eastern since 2004, had been attempting to take the 117-year-old insurer private. The lender's chief executive officer, Helen Wong, had expressed the desire to fully integrate its banking, wealth management, and insurance businesses, believing that owning all of Great Eastern would improve shareholder returns. To support the delisting proposal, OCBC offered S$30.15 per share for the 6.28% of the insurer it does not own, increasing the offer by 17.8% from its previous bid.

Great Eastern, one of the largest insurers in the region, has total assets exceeding S$100 billion and over 16 million policyholders. The failure of the delisting proposal means that Great Eastern will continue to operate as a publicly listed company, allowing minority shareholders to retain their investments. This outcome underscores the influence of minority shareholders in corporate decision-making, particularly in delisting proposals.

The rejection of the delisting proposal also highlights the complexities involved in such corporate actions. Delisting proposals often require a high level of shareholder approval, and the failure to meet this threshold can have significant implications for the company's future. In this case, the failure means that Great Eastern will continue to operate as a publicly listed company, allowing minority shareholders to retain their investments. This outcome is significant as it reflects the influence of minority shareholders in corporate decision-making processes, particularly in cases involving delisting proposals.

The resumption of trading in Great Eastern's shares is expected to provide clarity to investors and stakeholders, who had been awaiting the outcome of the delisting proposal. The company's management will now focus on its core operations and strategic initiatives, aiming to enhance shareholder value and drive growth. The failure of the delisting proposal does not necessarily indicate a lack of confidence in the company's prospects, but rather a reflection of the diverse interests and priorities of its shareholders.

Great Eastern will issue new shares to meet the exchange’s listing rules. After the share issue, OCBC’s holding in Great Eastern will be around 88% from the current level of about 94%. The insurer has contributed an average of about S$700 million a year in net profit to OCBC over the past 10 years, translating to an average of about 15% of OCBC’s annual profit over this period. The insurer did not provide any date for the resumption of trading.