OCBC Bank announced that it has made a S$1.4 billion bid to acquire the remaining 11.56% of Great Eastern Holdings Limited that it does not own. The bank has been a major shareholder in Great Eastern for the past 20 years.
The move is aimed at strengthening OCBC’s strengths in banking, wealth management and insurance. The proposed acquisition is part of OCBC’s strategic efforts to increase its presence in the wealth management sector in Asia.
The offering price of S$25.60 per share is significantly higher than Great Eastern’s last closing price, representing a premium of ~42.4% over various periods.
The acquisition could result in Great Eastern being delisted from the Singapore Exchange Stock Exchange (SGX-ST).
Helen Wong
Helen Wong, Group CEO OCBC Said,
“This offer is a natural progression of OCBC’s strategy. We are building a strong asset management franchise by hiring the best talent, implementing best practices and processes, and increasing our investment in Great Eastern.” I have moved intentionally to do so.”
OCBC’s efforts are rooted in a strategy developed in 2022 that aims to leverage trade, investment and wealth in the region.
This strategic move also complements the company’s established hubs in Singapore, Hong Kong and Dubai, supported by digital offerings.
The acquisition is expected to be revenue accretive, with Great Eastern contributing an average of approximately S$700 million annually to OCBC’s net profit over the past 10 years. This represents about 15% of OCBC’s annual revenue.
Wong also pointed out that this is not the first time OCBC has sought to increase its stake in Great Eastern, with previous offers made in 2004 and 2006. The company said it believes the move will strengthen integration across its businesses.
JPMorgan Securities Asia Private Limited is acting as exclusive financial advisor to OCBC on the transaction, and Allen & Gledhill LLP is acting as legal advisor.
