The retail investor advocacy group described OCBC’s privatisation bid for its insurance arm Great Eastern as having created a “dilemma to minority shareholders where they are not given a choice”.
The directors of Singapore's Great Eastern have been advised to recommend that minority shareholders accept a S$1.4 billion offer from the insurer's top investor Oversea-Chinese Banking Corp . SINGAPORE: Citing “unhappiness” among minority shareholders of Great Eastern, the Securities Investors Association Singapore has posed questions to OCBC about the bank’s privatisation bid for its insurance arm.
Last week, Ernst & Young – the independent financial adviser appointed to the deal – described the terms of OCBC’s offer asFollowing that, OCBC said in a separate statement that its offer price was “final” and extended the closing date of its offer to Jul 12. Several long-term shareholders have also previously told SIAS, as well as in the public through media interviews, that “they will not accept offer because they feel that has been trading below the true value for the longest time”, said Mr Gerald.
Mr Gerald also asked for the key factors that led OCBC to its offer price, how the bank justifies what is perceived as an “unfair” offer and if the bank has received feedback from its own shareholders regarding the potential reputational risks arising from this deal.In the media statement, SIAS described OCBC’s offer as an example that has created a “dilemma to minority shareholders where they are not given a choice to make a decision due to terms of the offer”.
For a company to remain listed on the Singapore Exchange , at least 10 per cent of its shares must be held by the public. Such a trading suspension was also highlighted by the independent financial advisor as a risk for shareholders.
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