Great Eastern Holdings’ share price is at a new all-time high. At its closing price on Sept 16 of $15.73, it is higher than the theoretical exit offer by Oversea-Chinese Banking Corp if the vote to delist GEH had been successful, and $5.86 higher than the $25.60 (pre bonus issue) that was offered to all the minority shareholders of GEH last year.
Since GEH is consolidated within OCBC, its share price is unlikely to impact valuations. The key figure for OCBC’s investors is GEH’s contributions to OCBC’s net profit. On the other hand, the wealth of the Wong family and other minorities such as hedge fund Palliser will have risen.
Across the Causeway, Sungei Bagan Rubber Company owns 4.765 million shares according to GEH’s 2024 annual report. With the 1-for-1 bonus issue as part of the relisting effort, Sungei Bagan will probably hold 9.53 million shares. These shares are entitled to GEH’s full 1H2025 dividend payout giving the Malaysian entity a further $2.383 million.
The ephemeral nature of daily share prices notwithstanding, Sungei Bagan has, as of Sept 16, made a net gain on its net asset value per share of 42 cents or RM1.38 excluding the dividend.
Sungei Bagan’s net asset per share was RM11.37 as of June 30 and it closed at RM5.82 on Sept 16. As a result of GEH's price rise, Sungei Bagan's theoretical, temporary P/NAV falls to 0.45x. Of course the impact could evaporate by Sept 17 or it may be more pronounced. That is the nature of fluctuating stock prices.
