Great Eastern to resume trading on Aug 21 as bonus issue lifts free float to above 10%

[SINGAPORE] Great Eastern Holdings (GEH) is set to resume trading on the Singapore Exchange (SGX) on Aug 21, as a proposed bonus share issue will lift its free float to above 10 per cent.

Public shareholders will hold 11.76 per cent of voting rights in GEH after the bonus issue, according to the results of the shares election released on Thursday (Aug 14).

Some 5,423 Class C non-voting shares were also issued to public shareholders.

In total, 29.7 million ordinary shares and 443.6 million Class C shares were issued.

Meanwhile, OCBC elected to receive Class C non-voting shares, bringing its holdings of voting shares in GEH to 88.19 per cent.

GEH was suspended from trading in July 2024 after its free float fell below 10 per cent, following a failed takeover bid by parent company OCBC.

In a bid to restore its free float requirement to resume trading, GEH proposed a one-for-one bonus issue resolution comprising new ordinary shares and newly created Class C non-voting shares, from which shareholders could choose.

This was passed after a vote for a delisting resolution – comprising a conditional exit offer from OCBC – fell through at the insurer’s extraordinary general meeting in July.

OCBC previously announced its intent to choose the non-voting shares.

The move allows the insurer to satisfy the minimum free float requirement, while letting OCBC keep its 93.72 per cent stake in GEH’s economic interests, since the non-voting shares rank equally with the ordinary shares.

The directors of GEH earlier recommended that shareholders, apart from the offeror, do not elect to receive the Class C shares.

In July, GEH chief financial officer Ronnie Tan said that it would not be sensible for shareholders other than OCBC to opt for Class C shares, as doing so would mean relinquishing significant rights due to several disadvantages.