Great Eastern Holdings Limited is set to convene a shareholder meeting to vote on a proposed delisting, following a fresh acquisition bid from Oversea-Chinese Banking Corporation (OCBC).
According to a Bloomberg report, the offer targets the 6.28% of Great Eastern shares that OCBC does not already own and values the stake at S$900 million (approximately US$700 million).
Under the proposal, OCBC will pay S$30.15 per share, a 17.8% increase over its previous offer made in May 2024.
The bank said this will be its final offer and does not expect to make further proposals.
This marks the fourth time since 2004 that OCBC has attempted to acquire the remaining shares of Great Eastern.
The insurer, founded in 1908, operates primarily in Singapore and Malaysia and reports total assets exceeding S$100 billion. It reported a 13% rise in profit attributable to shareholders for the first quarter of 2025 (Q1 2025), totalling S$345.5 million. The increase was attributed to gains in its core insurance operations and stronger returns from shareholder investments.
New business embedded value (NBEV), a measure of future profitability from new policies, grew by 19% to S$148.8 million.
Meanwhile, total weighted new sales (TWNS) dropped by 34% year-on-year to S$345.1 million. The insurer said the decline was due to a shift in focus from single-premium to regular premium products, which it views as more sustainable over time.
OCBC has stated that the acquisition supports its long-term strategy to unify its banking and insurance units across the region.
Great Eastern’s independent directors have supported the offer, following an assessment by Ernst & Young LLP, which found the terms to be “fair and reasonable.”
Bloomberg reported that a dual resolution will be presented at the upcoming meeting – one on delisting and another on issuing new shares to enable potential relisting.
Despite the premium, the offer remains below Great Eastern’s reported 2024 embedded value of S$38.08 per share – a point of contention in previous bids.
JPMorgan Chase & Co is advising OCBC, while Bank of America Corp is acting as adviser to Great Eastern.
The timing of the offer coincides with a slowdown in regional deal activity.
Research from GlobalData showed a 2.6% year-over-year decline in deal volume across Asia-Pacific during the first four months of 2025, driven primarily by an 8.2% decrease in venture capital transactions.
In contrast, mergers and acquisitions increased by 2.4%, and private equity activity rose marginally.
Investment patterns varied by market, with China experiencing a sharp drop, while India and Japan reported growth of 13% and 25%, respectively. Singapore, South Korea, and Australia all recorded declines.
