No plan to convert Class C non-voting shares in GE to ordinary ones: OCBC

OCBC Bank said it has "no intention" to convert its Class C non-voting shares in Great Eastern to ordinary shares when they come up for conversion in five years.

- Additional reporting by Kang Wan Chern

In a statement on June 23, the lender said it does not intend to convert the Class C shares "on or after the fifth anniversary of the first issuance" as it would result in Great Eastern losing its free float again.

"OCBC is electing for the Class C non-voting shares at Great Eastern's request to help Great Eastern to meet the free-float requirement and the resumption of trading," it said.

The statement was made in response to media reports about how OCBC can still propose the privatisation and delisting of Great Eastern by converting these non-voting shares to ordinary voting shares.

Early in June, OCBC made a conditional exit offer at $30.15 per share for the 6.28 per cent stake in Great Eastern it does not own, in a bid to delist the insurer amid the latter's trading suspension.

The offer is conditional upon 75 per cent of Great Eastern's remaining shareholders voting in favour of a delisting. OCBC will not be able to vote.