OCBC Bank has announced a proposal to privatise Great Eastern, offering S$30.15 per share, in an effort to resolve the trading suspension of the latter. This move, revealed on 10 June 2025, provides Great Eastern shareholders with an exit option or the alternative of resuming trading through a bonus issue.
RHB analysts suggest the exit offer is likely to be accepted due to its improved pricing, although the impact on OCBC’s financials is expected to be minimal.
The proposal aims to address the liquidity issues faced by Great Eastern’s minority shareholders, who would otherwise have to deal with limited stock liquidity if trading resumes. The offer represents a strategic decision by OCBC to streamline its operations and potentially enhance shareholder value.
The financial implications for OCBC are projected to be negligible, maintaining a neutral stance with a target price of SGD17.50 and a forecasted yield of approximately 6% for the financial year 2025. The bank’s decision reflects its ongoing efforts to optimise its investment portfolio and address market challenges.
This development is part of OCBC’s broader strategy to strengthen its market position and improve operational efficiency. The outcome of the proposal will be closely watched by investors and analysts, as it could set a precedent for similar corporate actions in the region. The decision underscores the bank’s commitment to addressing shareholder concerns whilst navigating the complexities of the current financial landscape.
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