Great Eastern Could Resume Trading After Delisting Vote Fails

Around 63.5% of minority shareholders vote to delist, short of minimum 75% required

- Sheila Chiang and Kang Wan Chern Deputy Business Editor

Great Eastern (GE) may resume trading after a proposed delisting resolution failed to pass at its extraordinary general meeting (EGM) on July 8.

At the meeting held at Great Eastern Centre, around 63.5 per cent of minority shareholders present and voting at the EGM voted in favour of the delisting resolution, falling short of the minimum 75 per cent required for the delisting to take place.

GE had said in a June 9 circular to shareholders that the delisting would need the approval of a majority of at least 75 per cent of the total number of shares held by minority shareholders present and voting in person or by proxy at the EGM.

OCBC Bank, the parent company of GE, abstained from voting. The outcome of the delisting resolution was determined solely by GE's minority shareholders.

Had they voted to delist, they would have been able to receive $30.15 per share under OCBC's $900 million exit offer for the remaining 6.28 per cent of GE shares it does not own. This is up from the original $25.60 per share offer in May 2024.

The $30.15 exit offer was assessed as fair and reasonable by Ernst & Young, the independent financial adviser appointed by GE.

According to Singapore Exchange listing rules, an offer must be both fair and reasonable before a company can delist.

Mr Wong Hong Sun and his family, who own 7.56 million shares, representing 25.5 per cent of 29.6 million shares held in total by minority shareholders, voted against the delisting.

"This is my grandfather's company and it's our legacy. I would not sell it. We are holding for the legacy for our son," said Mr Wong, whose grandfather Wong Siew Qui was chairman of Great Eastern Life Assurance Co from 1951 to 1969.

He noted that the offer price of $30.15 is at the lower end of the IFA's fair and reasonable range of $30.10 to $37.63.