After nearly a year in trading limbo, the long-running Great Eastern Holdings (GEH) drama has taken a sharp and unexpected turn — and minority shareholders finally have a glimmer of vindication.

In a bold two-pronged move, OCBC — GEH’s controlling shareholder — has offered minority investors a beefed-up exit price of S$30.15 per share, nearly 18% higher than its previous lowball bid of S$25.60. This surprise bump is part of a fresh delisting proposal that, if approved, would cost OCBC close to S$900 million to acquire the remaining 6.28% stake it doesn’t already own.

For minorities who stood their ground, endured an 11-month trading suspension, and watched previous offers fall short, this is nothing short of a tactical win — but it comes with plenty of strings attached.

🔄 A Clever Plan With Two Doors

OCBC’s latest proposal gives GEH minorities two stark options:

1️⃣ Delist with payout:

Accept the S$30.15 offer and walk away with a significant premium over the previous bid — though still short of the insurer’s embedded value of S$38.08.

2️⃣ Resume trading, with a twist:

Reject the delisting and allow trading to resume — but under a new structure. GEH will issue a one-for-one bonus share and offer shareholders a chance to convert them into Class C non-voting shares, which won’t be listed but will carry the same dividend rights.

OCBC itself has agreed to take Class C shares, which would reduce its ownership from 93.72% to 88.19%, restoring GEH’s free float — at least for now.

💡 Tactical Genius — or Temporary Band-Aid?

While the exit offer has been deemed “fair and reasonable” by independent advisers, many minority investors still believe the company is worth significantly more. After all, the current offer only values GEH at around 0.8 times embedded value, far below where some believe a fair multiple should be.

Even if trading resumes, questions remain:

• Can GEH attract meaningful market liquidity with a much smaller shareholder base (now just 838 holders vs. 3,466 a year ago)?

• Will trading simply dry up again, forcing yet another suspension down the road?

OCBC has cleverly secured the right to convert its Class C shares back into ordinary shares after five years — a move that could once again push GEH toward a delisting in the future.

🧨 From Minority Rebellion to Reluctant Resolution

It’s been a long road for GEH minorities. Just last year, some shareholders tried to table bold resolutions aimed at pressuring the board:

• Tying director compensation to share price recovery.

• Using GEH shares (instead of OCBC shares) for staff compensation.

• Appointing independent advisers to explore shareholder value enhancement.

Though these resolutions were never tabled, OCBC’s subsequent move to launch its first offer two weeks later suggests the pressure did not go unnoticed. Fast forward to today, and that pressure has helped deliver a S$30.15 offer that finally hits the 0.8x embedded value mark the minorities were originally fighting for.

⚠ The Road Ahead: Resolution or Reset?

While this latest offer feels like progress, the underlying tension between OCBC and GEH’s minorities remains. If the delisting goes through, OCBC secures full control. If trading resumes, minorities may keep pushing for higher valuations, better governance, and more substantial free float.

Either way, OCBC has shown it’s now willing to negotiate — something that seemed nearly impossible just a year ago.

The Great Eastern endgame is here — but this might only be Act Two.

Thank you