Shareholders are urged to review the terms of Great Eastern Holdings’ (GEH) new offer carefully, weigh them against their individual investment circumstances and objectives, and make informed decisions accordingly, says Securities Investors Association (Singapore) or SIAS in a June 6 statement signed by founder, president & CEO, David Gerald.
While shareholders will welcome GEH’s new delisting offer after an extended 11-month wait, SIAS notes that it has been a “prolonged and uncertain period” for shareholders with GEH seeking “extension after extension”.
On June 6, GEH and Oversea-Chinese Banking Corporation (OCBC) presented a revised offer price of $30.15, which represents a “material increase” from the previous offer of $25.60.
“According to the disclosure made in the joint announcement, the independent financial adviser (IFA) has opined that the terms of the new offer are fair and reasonable. The decision on whether GEH will be delisted now rests squarely in the hands of shareholders,” SIAS notes.
Should shareholders reject the delisting, GEH has suggested another pathway to restore compliance with Singapore Exchange’s (SGX) free float requirement, which is to issue bonus GEH shares. Through this, OCBC will receive newly-created Class C non-voting shares in lieu of ordinary shares.
Yet, the earlier voluntary general offer, which closed on July 12, 2024, was a “distinct and separate” corporate action. GEH shareholders who accepted that offer will not receive any further compensation despite the IFA stating, at the time, that the offer was “not fair but reasonable”.
See also: Great Eastern to restore free float if final exit offer of $30.15 is rejected
“SIAS is disappointed with this outcome, where GEH shareholders who were unable to withstand the trading suspension have ultimately lost out on realising a fair value for their GEH shares,” reads the statement.
“For shareholders who held on, it has been a prolonged and uncertain period, with GEH seeking extension after extension. GEH shares have been suspended from trading since July 2024, and this suspension has severely limited shareholders’ ability to make investment decisions, rebalance portfolios, or exit their positions,” SIAS adds.
With this, SIAS is urging regulators to further refine the rules to provide stronger safeguards for shareholders in such circumstances. The association says it is preparing to meet with GEH and its shareholders “in due course” to explain the implications of the proposed resolutions.
