SHARES of Great Eastern rocketed as much as 39 per cent shortly after it lifted trading halt, following OCBC’s S$1.4 billion privatisation offer on Friday (May 10).
OCBC has made a voluntary unconditional general offer for the 11.56 per cent stake in Great Eastern that it does not currently own, with the aim to delist its insurance arm.
The offer price of S$25.60 per share represents a 36.9 per cent premium over Great Eastern’s last traded price of S$18.70 before the offer announcement. It is, however, at a 30 per cent discount to Great Eastern’s embedded value per share of S$36.59 as at Dec 31, 2023.
