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Latest Forum Topics / OCBC Bank    Last:24.0 --  Post Reply
Great Eastern 20.5
chartiskao
Elite
16-May-2024 09:31     
 
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 Alert Admin 		Raising OCBC' s offer to privatize Great Eastern shares could be compelling for several reasons:
  1. Maximizing Shareholder Value: Increasing the offer price could potentially enhance shareholder value for both OCBC and Great Eastern shareholders. A higher offer price may better reflect Great Eastern' s intrinsic value, ensuring that shareholders receive fair compensation for their shares.
  2. Competitive Advantage: In a competitive market, raising the offer price could help OCBC outbid potential competitors and secure the acquisition of Great Eastern. This could prevent rival companies from gaining control of Great Eastern and allow OCBC to capitalize on the strategic benefits of the acquisition.
  3. Stakeholder Support: A higher offer price may garner greater support from Great Eastern' s shareholders, including institutional investors and minority shareholders. This support could facilitate the successful completion of the privatization deal and minimize opposition or resistance from stakeholders.
  4. Financial Performance: If Great Eastern continues to demonstrate strong financial performance and growth prospects, raising the offer price may be justified to account for its increasing value. This could align with OCBC' s goal of acquiring a profitable and strategically valuable asset.
  5. Long-Term Strategy: Investing in Great Eastern at a higher valuation could be part of OCBC' s long-term strategic vision to expand its presence in the insurance and wealth management sectors. By paying a premium for Great Eastern' s shares, OCBC may position itself for future growth opportunities and strengthen its competitive position in the market.


chubbybastard      ( Date: 12-May-2024 05:46) Posted:

Ya lo. Its a really good offer liao. If shareholders play punk, OCBC can just buy 2% from market and trigger a mandatory takeover since tgey already own 88% of GE. Honestly if I were OCBC i will just buy the 2% from open market and offer like way lower price to the remaining 10%

MrBear12      ( Date: 11-May-2024 21:15) Posted:

All OCBC needs to do is reach 90 per cent and compulsory delisting will occur.

Frankly, they can just acquire the slightly over 1% they need from the open market at a slight premium to their offer price before they hit that 90% figure.

Say goodbye to GE as a counter on SGX.

Happy Mother' s Day!
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chartiskao
Elite
16-May-2024 09:21     
 
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 Alert Admin 		allow other overseas players like the Japanese banks to bid for GE to allow its fair value
GEH' s financial results indeed showcase a robust performance, with significant growth in net profit and dividends, along with impressive metrics in new sales and embedded value. Its established presence in the insurance industry, coupled with its extensive customer base and historical profitability, makes it an appealing acquisition target for OCBC.
OCBC' s decision to acquire GEH aligns with its strategic vision of becoming a prominent player in Asia' s wealth management sector. By integrating GEH' s life insurance expertise with OCBC' s banking and wealth management services, the acquisition aims to offer comprehensive and tailored insurance solutions to a broader customer base. This strategic synergy is expected to enhance OCBC' s returns and optimize capital utilization.
Moreover, the acquisition is projected to be earnings accretive for OCBC, leveraging GEH' s substantial contribution to net profit over the past decade. This contribution, constituting a notable portion of OCBC' s total net profit, underscores the potential financial benefits of the acquisition. Despite utilizing internal cash for the offer, OCBC anticipates maintaining a strong capital position, assuring stakeholders of its financial stability post-acquisition.
Overall, the acquisition of GEH presents a strategic opportunity for OCBC to bolster its wealth management capabilities, capitalize on synergies, and enhance shareholder value. With GEH' s strong performance and market position, coupled with OCBC' s strategic vision and financial strength, the acquisition appears to be a prudent move for both entities.
 
 
 
 
 


chartiskao      ( Date: 16-May-2024 09:18) Posted:

A non so attrracctive takeover offer of $25.60 by OCBC

  strong set of results for GEH

With this in mind, let&rsquo s take a peek at GEH&rsquo s financial results to determine if OCBC made a wise move.
In 2023, GEH saw its net profit climb 27% year on year to S$774.6 million.
The insurer declared a final  dividend  of S$0.40, taking its total 2023 dividend to S$0.75, up from S$0.65 a year ago.
For 1Q 2024, GEH saw total weighted new sales jump 34% year on year to S$524.2 million while new business embedded value rose 21% year on year to S$163.2 million.
The group&rsquo s net profit continued to rise, improving by 26% year on year to S$306.7 million.

A sprawling enterprise

GEH is a big name in Asia&rsquo s insurance industry with more than 16 million policyholders across Singapore and Malaysia (see below).

Source: OCBC&rsquo s offer for Great Eastern &ndash Presentation Slides
The insurer also has more than 115 years of operating history and is a storied name in the industry.
The markets that it targets (Singapore and Malaysia) have a total combined population of 40 million along with a gross domestic product of more than US$900 billion.
These attributes make GEH attractive as the insurer not only boasts a strong franchise but also enjoys structural tailwinds that will enable it to grow further.

Offer backed by solid reasons

OCBC also offered several reasons as to why it decided to buy up all the shares of GEH.
The first is to reinforce its strategic vision to become Asia&rsquo s leading wealth management player.
This move is in line with OCBC&rsquo s rebranded corporate strategy to strengthen its key pillars of banking, wealth management, and insurance.
With GEH being an established market leader for life insurance, OCBC shares a synergistic relationship with the insurer.
OCBC can tap GEH to offer a comprehensive suite of customised insurance solutions while GEH leverages OCBC&rsquo s extensive retail and commercial customer base.
Management also argues that this offer will enhance OCBC&rsquo s returns and help to optimise capital.
Assuming the offer goes through, it will be earnings accretive to OCBC as GEH has contributed an average of S$700 million in net profit annually to the bank over the past decade.
This level of profit equates to around 15% of OCBC&rsquo s total net profit for the period.
The offer will also raise OCBC&rsquo s 2023 return on equity (ROE) by 0.2 percentage points to hit 14% while its CET1 (Capital Adequacy) Ratio will fall to 15.3%.
Management also assures that OCBC&rsquo s capital position will remain strong following the offer even though the  blue-chip  bank will use solely internal cash to fund the offer.



 

chartiskao      ( Date: 14-May-2024 18:20) Posted:

https://links.sgx.com/FileOpen/OCBC_priced_US$500million_of_Tier_2_Subordinated_Notes.ashx?App=Announcement& FileID=80327
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chartiskao
Elite
16-May-2024 09:18     
 
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 Alert Admin 		A non so attrracctive takeover offer of $25.60 by OCBC

  strong set of results for GEH

With this in mind, let&rsquo s take a peek at GEH&rsquo s financial results to determine if OCBC made a wise move.
In 2023, GEH saw its net profit climb 27% year on year to S$774.6 million.
The insurer declared a final  dividend  of S$0.40, taking its total 2023 dividend to S$0.75, up from S$0.65 a year ago.
For 1Q 2024, GEH saw total weighted new sales jump 34% year on year to S$524.2 million while new business embedded value rose 21% year on year to S$163.2 million.
The group&rsquo s net profit continued to rise, improving by 26% year on year to S$306.7 million.

A sprawling enterprise

GEH is a big name in Asia&rsquo s insurance industry with more than 16 million policyholders across Singapore and Malaysia (see below).

Source: OCBC&rsquo s offer for Great Eastern &ndash Presentation Slides
The insurer also has more than 115 years of operating history and is a storied name in the industry.
The markets that it targets (Singapore and Malaysia) have a total combined population of 40 million along with a gross domestic product of more than US$900 billion.
These attributes make GEH attractive as the insurer not only boasts a strong franchise but also enjoys structural tailwinds that will enable it to grow further.

Offer backed by solid reasons

OCBC also offered several reasons as to why it decided to buy up all the shares of GEH.
The first is to reinforce its strategic vision to become Asia&rsquo s leading wealth management player.
This move is in line with OCBC&rsquo s rebranded corporate strategy to strengthen its key pillars of banking, wealth management, and insurance.
With GEH being an established market leader for life insurance, OCBC shares a synergistic relationship with the insurer.
OCBC can tap GEH to offer a comprehensive suite of customised insurance solutions while GEH leverages OCBC&rsquo s extensive retail and commercial customer base.
Management also argues that this offer will enhance OCBC&rsquo s returns and help to optimise capital.
Assuming the offer goes through, it will be earnings accretive to OCBC as GEH has contributed an average of S$700 million in net profit annually to the bank over the past decade.
This level of profit equates to around 15% of OCBC&rsquo s total net profit for the period.
The offer will also raise OCBC&rsquo s 2023 return on equity (ROE) by 0.2 percentage points to hit 14% while its CET1 (Capital Adequacy) Ratio will fall to 15.3%.
Management also assures that OCBC&rsquo s capital position will remain strong following the offer even though the  blue-chip  bank will use solely internal cash to fund the offer.



 

chartiskao      ( Date: 14-May-2024 18:20) Posted:

https://links.sgx.com/FileOpen/OCBC_priced_US$500million_of_Tier_2_Subordinated_Notes.ashx?App=Announcement& FileID=803270

chartiskao      ( Date: 14-May-2024 13:08) Posted:

http://www.aastocks.com/en/stocks/analysis/stock-aafn/01299/0/hk-stock-news/1
 
It is well known that Great Eastern Holdings  G07  0.08%  has an excess of risk-based capital (the equivalent of banks&rsquo capital adequacy ratios). And it is clear from its share price that it is trading at a steep discount to its embedded value, which comprises a combination of shareholders funds and the value of the in-force business. The latter is calculated using a form of discounted cash flow (DCF).
According to Ronnie Tan, GEH&rsquo s CFO, discount rates in both Malaysia and SIngapore were raised by 25 bps each. This, coupled with assumptions of higher medical claims in 2023 versus previous years impacting cash flow assumptions, caused the value of the in-force business to dip by 4.2% y-o-y in FY2023.
Against this background, embedded value fell by 3.2% y-o-y in FY2023 to $17.3 billion, or $36.59 per share. Shareholders funds dipped marginally to $6.74 billion. However, total equity rose by 10% y-o-y, translating in net asset value of $16.66 per share.      
Despite trading at one-year lows, AIA&rsquo s share price is still above its Dec 31, 2022 embedded value of US$57.38 per share. Why is AIA trading closer to its embedded value, at a premium, compared to GEH&rsquo s sharp discount?
Ong Chin Woo, a shareholder of GEH who has sent a letter to GEH&rsquo s board requesting that three resolutions be tabled at its AGM, believes it is because of the lack of liquidity. Oversea-Chinese Banking Corp holds 88% of GEH.
The three resolutions tabled by Ong are: To withhold 30% of Board of Directors&rsquo fees until GEH&rsquo s share price recovers to 0.8 times of its Embedded Value to replace OCBC shares in the current Executive Share Option Schemes for GEH' s management with GEH shares and to appoint an independent financial advisor to explore options to enhance GEH shareholders&rsquo value.
See also:  Despite hiccups, local banks stay resilient with STI well-supported
Moreover, Ong calculates that GEH has an excess of around $1.45 billion in risk-based capital, or around $3 per share. 
Enhancing GEH shareholders&rsquo value could be pretty straightforward. In GEH&rsquo s FY2023 AGM, the minority shareholders suggested giving GEH shares as a dividend-in-specie to OCBC shareholders. This would immediately create liquidity. OCBC shareholders unhappy with GEH shares could sell them in the market.
And, unlike CapitaLand Ascott Trust  HMN  -0.55%  , CDL Hospitality Trust and Keppel REIT, where an overhang was created via the distributions-in-specie, this is unlikely to be the case for GEH. There could even be a clamouring for a more liquid GEH from institutions, providing the insurer with the potential to get into indices such as the MSCI and Straits Times Index. OCBC&rsquo s shares would also be traded higher as the value of GEH shares rises as a result of just floating higher naturally.
See also:  Technically, DBS is overstretched on the upside
GEH&rsquo s share price may have found a floor at current levels. But its minority shareholders, OCBC and the Singapore market would be better served with a more liquid GEH which in turn would encourage other insurers to list here. FWD has aspirations to list but in Hong Kong. Singapore' s hub status could be enhanced if it is also an insurance hub. Would FWD view Singapore as an attractive listing venue?  
 


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chartiskao
Elite
14-May-2024 18:20     
 
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 Alert Admin 		https://links.sgx.com/FileOpen/OCBC_priced_US$500million_of_Tier_2_Subordinated_Notes.ashx?App=Announcement& FileID=803270

chartiskao      ( Date: 14-May-2024 13:08) Posted:

http://www.aastocks.com/en/stocks/analysis/stock-aafn/01299/0/hk-stock-news/1
 
It is well known that Great Eastern Holdings  G07  0.08%  has an excess of risk-based capital (the equivalent of banks&rsquo capital adequacy ratios). And it is clear from its share price that it is trading at a steep discount to its embedded value, which comprises a combination of shareholders funds and the value of the in-force business. The latter is calculated using a form of discounted cash flow (DCF).
According to Ronnie Tan, GEH&rsquo s CFO, discount rates in both Malaysia and SIngapore were raised by 25 bps each. This, coupled with assumptions of higher medical claims in 2023 versus previous years impacting cash flow assumptions, caused the value of the in-force business to dip by 4.2% y-o-y in FY2023.
Against this background, embedded value fell by 3.2% y-o-y in FY2023 to $17.3 billion, or $36.59 per share. Shareholders funds dipped marginally to $6.74 billion. However, total equity rose by 10% y-o-y, translating in net asset value of $16.66 per share.      
Despite trading at one-year lows, AIA&rsquo s share price is still above its Dec 31, 2022 embedded value of US$57.38 per share. Why is AIA trading closer to its embedded value, at a premium, compared to GEH&rsquo s sharp discount?
Ong Chin Woo, a shareholder of GEH who has sent a letter to GEH&rsquo s board requesting that three resolutions be tabled at its AGM, believes it is because of the lack of liquidity. Oversea-Chinese Banking Corp holds 88% of GEH.
The three resolutions tabled by Ong are: To withhold 30% of Board of Directors&rsquo fees until GEH&rsquo s share price recovers to 0.8 times of its Embedded Value to replace OCBC shares in the current Executive Share Option Schemes for GEH' s management with GEH shares and to appoint an independent financial advisor to explore options to enhance GEH shareholders&rsquo value.
See also:  Despite hiccups, local banks stay resilient with STI well-supported
Moreover, Ong calculates that GEH has an excess of around $1.45 billion in risk-based capital, or around $3 per share. 
Enhancing GEH shareholders&rsquo value could be pretty straightforward. In GEH&rsquo s FY2023 AGM, the minority shareholders suggested giving GEH shares as a dividend-in-specie to OCBC shareholders. This would immediately create liquidity. OCBC shareholders unhappy with GEH shares could sell them in the market.
And, unlike CapitaLand Ascott Trust  HMN  -0.55%  , CDL Hospitality Trust and Keppel REIT, where an overhang was created via the distributions-in-specie, this is unlikely to be the case for GEH. There could even be a clamouring for a more liquid GEH from institutions, providing the insurer with the potential to get into indices such as the MSCI and Straits Times Index. OCBC&rsquo s shares would also be traded higher as the value of GEH shares rises as a result of just floating higher naturally.
See also:  Technically, DBS is overstretched on the upside
GEH&rsquo s share price may have found a floor at current levels. But its minority shareholders, OCBC and the Singapore market would be better served with a more liquid GEH which in turn would encourage other insurers to list here. FWD has aspirations to list but in Hong Kong. Singapore' s hub status could be enhanced if it is also an insurance hub. Would FWD view Singapore as an attractive listing venue?  
 


Joelton      ( Date: 13-May-2024 15:34) Posted:

OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
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chartiskao
Elite
14-May-2024 13:08     
 
chartiskao About Contact  Quote this Post!  
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 Alert Admin
http://www.aastocks.com/en/stocks/analysis/stock-aafn/01299/0/hk-stock-news/1
 
It is well known that Great Eastern Holdings  G07  0.08%  has an excess of risk-based capital (the equivalent of banks&rsquo capital adequacy ratios). And it is clear from its share price that it is trading at a steep discount to its embedded value, which comprises a combination of shareholders funds and the value of the in-force business. The latter is calculated using a form of discounted cash flow (DCF).
According to Ronnie Tan, GEH&rsquo s CFO, discount rates in both Malaysia and SIngapore were raised by 25 bps each. This, coupled with assumptions of higher medical claims in 2023 versus previous years impacting cash flow assumptions, caused the value of the in-force business to dip by 4.2% y-o-y in FY2023.
Against this background, embedded value fell by 3.2% y-o-y in FY2023 to $17.3 billion, or $36.59 per share. Shareholders funds dipped marginally to $6.74 billion. However, total equity rose by 10% y-o-y, translating in net asset value of $16.66 per share.      
Despite trading at one-year lows, AIA&rsquo s share price is still above its Dec 31, 2022 embedded value of US$57.38 per share. Why is AIA trading closer to its embedded value, at a premium, compared to GEH&rsquo s sharp discount?
Ong Chin Woo, a shareholder of GEH who has sent a letter to GEH&rsquo s board requesting that three resolutions be tabled at its AGM, believes it is because of the lack of liquidity. Oversea-Chinese Banking Corp holds 88% of GEH.
The three resolutions tabled by Ong are: To withhold 30% of Board of Directors&rsquo fees until GEH&rsquo s share price recovers to 0.8 times of its Embedded Value to replace OCBC shares in the current Executive Share Option Schemes for GEH' s management with GEH shares and to appoint an independent financial advisor to explore options to enhance GEH shareholders&rsquo value.
See also:  Despite hiccups, local banks stay resilient with STI well-supported
Moreover, Ong calculates that GEH has an excess of around $1.45 billion in risk-based capital, or around $3 per share. 
Enhancing GEH shareholders&rsquo value could be pretty straightforward. In GEH&rsquo s FY2023 AGM, the minority shareholders suggested giving GEH shares as a dividend-in-specie to OCBC shareholders. This would immediately create liquidity. OCBC shareholders unhappy with GEH shares could sell them in the market.
And, unlike CapitaLand Ascott Trust  HMN  -0.55%  , CDL Hospitality Trust and Keppel REIT, where an overhang was created via the distributions-in-specie, this is unlikely to be the case for GEH. There could even be a clamouring for a more liquid GEH from institutions, providing the insurer with the potential to get into indices such as the MSCI and Straits Times Index. OCBC&rsquo s shares would also be traded higher as the value of GEH shares rises as a result of just floating higher naturally.
See also:  Technically, DBS is overstretched on the upside
GEH&rsquo s share price may have found a floor at current levels. But its minority shareholders, OCBC and the Singapore market would be better served with a more liquid GEH which in turn would encourage other insurers to list here. FWD has aspirations to list but in Hong Kong. Singapore' s hub status could be enhanced if it is also an insurance hub. Would FWD view Singapore as an attractive listing venue?  
 


Joelton      ( Date: 13-May-2024 15:34) Posted:

OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
 Useful To Me  Not Useful To Me


chartiskao
Elite
14-May-2024 02:20     
 
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It is well known that Great Eastern Holdings  G07  -0.04%  has an excess of risk-based capital (the equivalent of banks&rsquo capital adequacy ratios). And it is clear from its share price that it is trading at a steep discount to its embedded value, which comprises a combination of shareholders funds and the value of the in-force business. The latter is calculated using a form of discounted cash flow (DCF).
According to Ronnie Tan, GEH&rsquo s CFO, discount rates in both Malaysia and SIngapore were raised by 25 bps each. This, coupled with assumptions of higher medical claims in 2023 versus previous years impacting cash flow assumptions, caused the value of the in-force business to dip by 4.2% y-o-y in FY2023.
Against this background, embedded value fell by 3.2% y-o-y in FY2023 to $17.3 billion, or $36.59 per share. Shareholders funds dipped marginally to $6.74 billion. However, total equity rose by 10% y-o-y, translating in net asset value of $16.66 per share.      
Despite trading at one-year lows, AIA&rsquo s share price is still above its Dec 31, 2022 embedded value of US$57.38 per share. Why is AIA trading closer to its embedded value, at a premium, compared to GEH&rsquo s sharp discount?
Ong Chin Woo, a shareholder of GEH who has sent a letter to GEH&rsquo s board requesting that three resolutions be tabled at its AGM, believes it is because of the lack of liquidity. Oversea-Chinese Banking Corp holds 88% of GEH.
The three resolutions tabled by Ong are: To withhold 30% of Board of Directors&rsquo fees until GEH&rsquo s share price recovers to 0.8 times of its Embedded Value to replace OCBC shares in the current Executive Share Option Schemes for GEH' s management with GEH shares and to appoint an independent financial advisor to explore options to enhance GEH shareholders&rsquo value.
See also:  Despite hiccups, local banks stay resilient with STI well-supported
Moreover, Ong calculates that GEH has an excess of around $1.45 billion in risk-based capital, or around $3 per share. 
Enhancing GEH shareholders&rsquo value could be pretty straightforward. In GEH&rsquo s FY2023 AGM, the minority shareholders suggested giving GEH shares as a dividend-in-specie to OCBC shareholders. This would immediately create liquidity. OCBC shareholders unhappy with GEH shares could sell them in the market.
And, unlike CapitaLand Ascott Trust  HMN  0.00%  , CDL Hospitality Trust and Keppel REIT, where an overhang was created via the distributions-in-specie, this is unlikely to be the case for GEH. There could even be a clamouring for a more liquid GEH from institutions, providing the insurer with the potential to get into indices such as the MSCI and Straits Times Index. OCBC&rsquo s shares would also be traded higher as the value of GEH shares rises as a result of just floating higher naturally.
See also:  Technically, DBS is overstretched on the upside
GEH&rsquo s share price may have found a floor at current levels. But its minority shareholders, OCBC and the Singapore market would be better served with a more liquid GEH which in turn would encourage other insurers to list here. FWD has aspirations to list but in Hong Kong. Singapore' s hub status could be enhanced if it is also an insurance hub. Would FWD view Singapore as an attractive listing venue?  
 


chartiskao      ( Date: 14-May-2024 02:06) Posted:

in singapore ,how many listed firms operate in the principle of protecting monority interests since we have the sgx stock market?
OCBC' s strategy to strengthen its business pillars of banking, wealth management, and insurance, while optimizing its capital to enhance shareholder returns, involves a combination of strategic initiatives, operational efficiency improvements, and prudent capital management. Here are some key strategies that OCBC may employ:
  1. Business Diversification and Integration:
    • OCBC may focus on expanding and diversifying its product and service offerings within banking, wealth management, and insurance segments to cater to a broader range of customer needs.
    • Integration across business lines allows OCBC to offer comprehensive financial solutions, enhance customer engagement, and capture cross-selling opportunities.
  2. Customer-Centric Approach:
    • OCBC emphasizes a customer-centric approach, focusing on delivering value-added services, personalized solutions, and an exceptional customer experience across its banking, wealth management, and insurance businesses.
    • Understanding customer needs and preferences enables OCBC to tailor its products and services effectively, strengthen customer relationships, and drive long-term loyalty.
  3. Innovative Technology and Digital Transformation:
    • OCBC invests in innovative technology and digital transformation initiatives to enhance operational efficiency, streamline processes, and deliver seamless, omni-channel experiences to customers.
    • Digital platforms and solutions enable OCBC to offer convenient and accessible banking, wealth management, and insurance services, driving customer engagement and satisfaction.
  4. Strategic Partnerships and Collaborations:
    • OCBC may forge strategic partnerships and collaborations with fintech firms, insurtech companies, and other industry players to leverage complementary strengths, access new markets, and drive innovation.
    • Collaborative ventures enable OCBC to enhance its capabilities, expand its product offerings, and stay competitive in a rapidly evolving financial landscape.
  5. Risk Management and Capital Allocation:
    • OCBC prioritizes prudent risk management practices and effective capital allocation to safeguard its financial stability, protect shareholder value, and support sustainable growth.
    • By maintaining a strong capital position and optimizing capital allocation decisions, OCBC can capitalize on growth opportunities, pursue strategic investments, and enhance shareholder returns over the long term.
  6. Cost Efficiency and Operational Excellence:
    • OCBC focuses on cost efficiency and operational excellence initiatives to drive productivity improvements, streamline processes, and optimize resource allocation across its business segments.
    • Operational efficiency gains enable OCBC to enhance profitability, generate cost savings, and allocate resources effectively to strategic growth areas.
Overall, OCBC' s strategy to strengthen its business pillars of banking, wealth management, and insurance, while optimizing its capital to enhance shareholder returns, revolves around delivering value to customers, driving innovation, managing risk effectively, and maintaining financial discipline. By executing on these strategic priorities, OCBC aims to sustain its competitive advantage, drive growth, and create long-term value for its shareholders.
 

SlothSG      ( Date: 13-May-2024 18:04) Posted:

Curious what does the sentence below mean on obtaining 75% of the shares held by independent shareholders after IFA report. Does this protect minority shareholders?

&zwnj &ldquo Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders&ldquo

Thanks!
 Useful To Me  Not Useful To Me
chartiskao
Elite
14-May-2024 02:10     
 
chartiskao About Contact  Quote this Post!  
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Interests of OCBC and Great Eastern&rsquo s minority shareholders are fundamentally misaligned

The insurer should address the matter of its top executives receiving a significant proportion of their remuneration in OCBC shares
 

SlothSG      ( Date: 13-May-2024 18:04) Posted:

Curious what does the sentence below mean on obtaining 75% of the shares held by independent shareholders after IFA report. Does this protect minority shareholders?

&zwnj &ldquo Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders&ldquo

Thanks!

Joelton      ( Date: 13-May-2024 15:34) Posted:

OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
 Useful To Me  Not Useful To Me
chartiskao
Elite
14-May-2024 02:06     
 
chartiskao About Contact  Quote this Post!  
  x 0
  x 0

 Alert Admin 		in singapore ,how many listed firms operate in the principle of protecting monority interests since we have the sgx stock market?
OCBC' s strategy to strengthen its business pillars of banking, wealth management, and insurance, while optimizing its capital to enhance shareholder returns, involves a combination of strategic initiatives, operational efficiency improvements, and prudent capital management. Here are some key strategies that OCBC may employ:
  1. Business Diversification and Integration:
    • OCBC may focus on expanding and diversifying its product and service offerings within banking, wealth management, and insurance segments to cater to a broader range of customer needs.
    • Integration across business lines allows OCBC to offer comprehensive financial solutions, enhance customer engagement, and capture cross-selling opportunities.
  2. Customer-Centric Approach:
    • OCBC emphasizes a customer-centric approach, focusing on delivering value-added services, personalized solutions, and an exceptional customer experience across its banking, wealth management, and insurance businesses.
    • Understanding customer needs and preferences enables OCBC to tailor its products and services effectively, strengthen customer relationships, and drive long-term loyalty.
  3. Innovative Technology and Digital Transformation:
    • OCBC invests in innovative technology and digital transformation initiatives to enhance operational efficiency, streamline processes, and deliver seamless, omni-channel experiences to customers.
    • Digital platforms and solutions enable OCBC to offer convenient and accessible banking, wealth management, and insurance services, driving customer engagement and satisfaction.
  4. Strategic Partnerships and Collaborations:
    • OCBC may forge strategic partnerships and collaborations with fintech firms, insurtech companies, and other industry players to leverage complementary strengths, access new markets, and drive innovation.
    • Collaborative ventures enable OCBC to enhance its capabilities, expand its product offerings, and stay competitive in a rapidly evolving financial landscape.
  5. Risk Management and Capital Allocation:
    • OCBC prioritizes prudent risk management practices and effective capital allocation to safeguard its financial stability, protect shareholder value, and support sustainable growth.
    • By maintaining a strong capital position and optimizing capital allocation decisions, OCBC can capitalize on growth opportunities, pursue strategic investments, and enhance shareholder returns over the long term.
  6. Cost Efficiency and Operational Excellence:
    • OCBC focuses on cost efficiency and operational excellence initiatives to drive productivity improvements, streamline processes, and optimize resource allocation across its business segments.
    • Operational efficiency gains enable OCBC to enhance profitability, generate cost savings, and allocate resources effectively to strategic growth areas.
Overall, OCBC' s strategy to strengthen its business pillars of banking, wealth management, and insurance, while optimizing its capital to enhance shareholder returns, revolves around delivering value to customers, driving innovation, managing risk effectively, and maintaining financial discipline. By executing on these strategic priorities, OCBC aims to sustain its competitive advantage, drive growth, and create long-term value for its shareholders.
 

SlothSG      ( Date: 13-May-2024 18:04) Posted:

Curious what does the sentence below mean on obtaining 75% of the shares held by independent shareholders after IFA report. Does this protect minority shareholders?

&zwnj &ldquo Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders&ldquo

Thanks!

Joelton      ( Date: 13-May-2024 15:34) Posted:

OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
 Useful To Me  Not Useful To Me


SlothSG
Veteran
13-May-2024 18:04     
 
SlothSG About Contact  Quote this Post!  
  x 0
  x 0

 Alert Admin 		Curious what does the sentence below mean on obtaining 75% of the shares held by independent shareholders after IFA report. Does this protect minority shareholders?

&zwnj &ldquo Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders&ldquo

Thanks!

Joelton      ( Date: 13-May-2024 15:34) Posted:

OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
 Useful To Me  Not Useful To Me
Joelton
Supreme
13-May-2024 15:34     
 
Joelton About Contact  Quote this Post!  
  x 0
  x 0

 Alert Admin
OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
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Joelton
Supreme
13-May-2024 15:33     
 
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 Alert Admin
OCBC&rsquo s offer for Great Eastern is about responding to minority dissent, doubling down on its strategy
Deal may bring early end to the public conversation about how the two entities could be better run for minority investors
 
THIS column said last week that OCBC had three options to address the undervaluation of Great Eastern&rsquo s shares: it could organise a sale of the insurer, distribute a major portion of its stake to its own shareholders, or try once more to buy out all the insurer&rsquo s minority shareholders.
 
On Friday (May 10), OCBC unveiled a voluntary unconditional cash offer for all the shares it does not already own in Great Eastern, at S$25.60 per share.
 
This option hews closely to the bank&rsquo s longstanding narrative about Great Eastern being a strategic pillar of the group. In the short term, however, it may accentuate the fundamental misalignment of interest between OCBC and Great Eastern&rsquo s minority shareholders.
 
Great Eastern shares have languished for so long, and were trading so far below their intrinsic value, that the current offer price is bound to be a point of contention between OCBC and the insurer&rsquo s minority shareholders.
 
Even if OCBC improves its offer price in the weeks ahead, it seems unlikely it will be pushed high enough to leave Great Eastern&rsquo s long-suffering minorities feeling entirely satisfied.
 
The lender already holds 88.4 per cent of Great Eastern&rsquo s 473.3 million shares. Purchasing the remaining shares at the current offer price will cost about S$1.4 billion.
 
OCBC said this additional investment in Great Eastern will enhance its own return on equity (ROE) and optimise its common equity tier-1 (CET1) capital adequacy ratio.
 
One factor that clearly prompted it to take action now is the growing disgruntlement with the undervaluation of the insurer&rsquo s shares, which was beginning to raise questions about OCBC&rsquo s own strategy.
 
OCBC&rsquo s offer for Great Eastern is arguably as much about responding to the discontent with the insurer&rsquo s weak share price as it is about doubling down on its own strategy.
 
On a pro forma basis, subsuming all of Great Eastern would tighten OCBC&rsquo s 2023 CET1 ratio from 15.9 per cent to 15.3 per cent, and lift its 2023 ROE from 13.7 per cent to 14 per cent.
 
OCBC reported its results for Q1 2024 the same day it announced its offer for Great Eastern. Its earnings came in at S$1.98 billion, up 5 per cent year on year and 22 per cent quarter on quarter.
 
IFA key to delisting
OCBC&rsquo s offer price for Great Eastern is not compelling, in my view. While it is 36.9 per cent above Great Eastern&rsquo s last traded price before the offer was announced, it is 30 per cent below the insurer&rsquo s embedded value as at Dec 31.
 
Great Eastern is, however, very close to breaching the free float requirement of having at least 10 per cent of its shares in the hands of 500 members of the public. If the free float requirement is not met, trading in Great Eastern&rsquo s shares may be suspended.
 
OCBC has stated it intends to seek a delisting of Great Eastern in the event the free float requirement is not met. The lender needs to acquire only 7.4 million more shares in Great Eastern to push its stake in the insurer above the 90 per cent threshold.
 
Much really depends on whether the independent financial adviser (IFA) engaged by Great Eastern assesses OCBC&rsquo s offer to be &ldquo fair and reasonable&rdquo .
 
Singapore Exchange Regulation (SGX RegCo) said in 2019 that it would allow a company that is the subject of a general offer to delist only if the general offer is &ldquo fair and reasonable&rdquo , and the offeror has obtained at least 75 per cent of the shares held by independent shareholders.
 
Last year, trading in shares of Boustead Projects was suspended after an offer from Boustead Singapore left it in breach of the minimum required free float. The IFA appointed by Boustead Projects deemed the final offer at S$0.95 per share to be &ldquo not fair but reasonable&rdquo .
 
At the direction of SGX RegCo, Boustead Singapore subsequently made an exit offer for Boustead Projects at S$1.18 per share.
 
Market discipline
This column previously said one reason IFAs have waved through many seemingly inadequate offers &ndash for instance, offers for real estate companies at steep discounts to their net asset value (NAV) or revalued net asset value (RNAV) &ndash is because they did not use an appropriate valuation basis for public-listed companies moving into the private market.
 
Once a property company is taken private, it would be valued by investors and financiers on the basis of its NAV or RNAV. Offering to buy out minority shareholders of such a company at a big discount to these metrics would be plainly unfair.
 
By the same token, once Great Eastern is taken private, it would be valued by its owner on the basis of metrics such as embedded value or appraisal value. An offer to minority investors that values Great Eastern at a big discount to these metrics seems unfair to me.
 
The IFA that Great Eastern appoints should perhaps also critically examine the reasonableness of the offer from OCBC. For instance, it should look into the likelihood of more value being unlocked for Great Eastern&rsquo s shareholders via other means.
 
This brings me back to OCBC&rsquo s three options to address the undervaluation of Great Eastern&rsquo s shares. These were among many ideas that sprang up as the insurer&rsquo s minority shareholders began getting restless.
 
Over the last several weeks, a public conversation about how OCBC and Great Eastern could be better run for the benefit of minority investors has gradually widened.
 
Earlier this month, a letter to The Business Times from an OCBC shareholder argued that Great Eastern should not be absorbed in its entirety. The bank made a quick and detailed reply.
 
It would be a pity if OCBC&rsquo s offer for Great Eastern were to bring this conversation to an early end.
 
Being subjected to such market discipline can be uncomfortable for corporate boards, but it may lead to shareholders of public-listed companies being better served.
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chartiskao
Elite
13-May-2024 09:24     
 
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 Alert Admin 		Here are a few potential reasons why it might seem like major shareholders are undervaluing their own share price:
  1. Strategic Objectives: Major shareholders might have strategic objectives that prioritize long-term growth over short-term share price appreciation. They may be willing to accept short-term dilution or lower valuation multiples if it supports the company' s long-term strategic goals, such as expanding into new markets, investing in research and development, or acquiring complementary businesses.
  2. Capital Allocation: Shareholders might believe that reinvesting capital into the business at a lower valuation offers a better return on investment than returning capital to shareholders through dividends or share buybacks. This could involve retaining earnings to fund growth initiatives or making investments in areas that are expected to generate higher returns in the future.
  3. Market Conditions: Shareholders might perceive that the current market conditions or investor sentiment are not reflective of the company' s true value. They might be confident that the company' s intrinsic value will be recognized over time as market conditions improve or as the company executes its strategic initiatives.
  4. Financial Engineering: In some cases, shareholders might engage in financial engineering strategies such as share buybacks or reverse stock splits to manipulate the share price for short-term gains. While these tactics can temporarily boost the share price, they are generally not sustainable in the long run and may not create lasting value for shareholders.
  5. Regulatory or Legal Considerations: Shareholders might be subject to regulatory or legal constraints that limit their ability to take actions that could artificially inflate the share price. For example, engaging in stock manipulation or insider trading is illegal and can have severe consequences for shareholders and the company.
It' s important to note that maximizing shareholder value is a complex and multifaceted goal that requires balancing short-term and long-term considerations, as well as the interests of various stakeholders. While it may sometimes appear that major shareholders are undervaluing their own share price, their actions are typically driven by strategic considerations aimed at creating sustainable long-term value for the company and its shareholders.
 

chartiskao      ( Date: 13-May-2024 09:20) Posted:

  1. Financial Performance: Focus on improving key financial metrics such as revenue growth, profitability, and return on equity. This involves effective underwriting practices, disciplined expense management, and prudent investment strategies.
  2. Risk Management: Implement robust risk management practices to mitigate insurance and investment risks. This includes maintaining adequate reserves, diversifying investment portfolios, and managing exposure to catastrophic events.
  3. Dividend Policy: Establish a consistent and sustainable dividend policy to attract income-oriented investors. A track record of regular dividend payments and dividend growth can enhance shareholder value and support a higher share price.
  4. Capital Management: Optimize the company' s capital structure to enhance shareholder returns. This may involve share buybacks, debt refinancing, or issuing new equity capital to fund growth opportunities.
  5. Market Positioning: Differentiate the company from competitors by emphasizing its unique strengths, such as product innovation, customer service, or distribution network. A strong brand and reputation can command a premium valuation in the market.
  6. Investor Relations: Maintain transparent communication with investors and analysts to ensure they have a clear understanding of the company' s strategy, performance, and future prospects. Regular updates on financial results, business developments, and industry trends can help build investor confidence.
  7. Strategic Growth Initiatives: Pursue strategic initiatives that create long-term value for shareholders, such as entering new markets, expanding product offerings, or pursuing mergers and acquisitions. However, ensure that these initiatives are aligned with the company' s overall strategy and risk appetite.
  8. Regulatory Compliance: Stay abreast of regulatory developments and ensure compliance with all applicable laws and regulations. Regulatory compliance builds trust with investors and reduces the risk of regulatory fines or penalties that could negatively impact the share price.
  9. Sustainable Practices: Embrace environmental, social, and governance (ESG) principles to demonstrate the company' s commitment to sustainability and responsible corporate citizenship. ESG-focused investors may be more inclined to invest in companies that prioritize environmental and social concerns.
  10. Market Awareness: Monitor market trends, macroeconomic conditions, and industry dynamics that could impact the company' s performance and share price. Stay proactive in adjusting strategies to capitalize on opportunities and mitigate risks.
By focusing on these strategies, a life insurance company can enhance shareholder value and realize the full potential of its share price over time.
Realizing the full potential of a life insurance company involves a combination of strategic planning, customer-centric approach, and adaptability to market trends. Here are some steps to consider:
  1. Understand Market Needs: Analyze market trends, demographics, and customer preferences. Understand what types of life insurance products are in demand and tailor your offerings accordingly.
  2. Product Innovation: Develop innovative life insurance products that cater to different segments of the market. This could include term life, whole life, universal life, or other specialized products like retirement plans or health-related policies.
  3. Customer-Centric Approach: Put the customer at the center of everything you do. Understand their needs, provide excellent customer service, and offer personalized solutions. Building trust and long-term relationships with customers is crucial for the success of any life insurance company.
  4. Technology Integration: Embrace technology to streamline processes, enhance customer experience, and improve operational efficiency. Invest in digital platforms for sales, customer service, and claims processing. Utilize data analytics to gain insights into customer behavior and preferences.
  5. Distribution Channels: Diversify distribution channels to reach a wider audience. This could include partnering with banks, financial advisors, brokers, or selling directly to consumers online.
  6. Risk Management: Implement robust risk management practices to ensure the financial stability of the company. This involves managing investment risks, underwriting risks, and other operational risks effectively.
  7. Regulatory Compliance: Stay updated with regulatory requirements and ensure compliance with all relevant laws and regulations. Non-compliance can lead to significant financial and reputational damage.
  8. Talent Management: Invest in hiring and retaining top talent in the industry. Having skilled professionals in areas such as underwriting, actuarial science, sales, and marketing is essential for the success of the company.
  9. Social Responsibility: Demonstrate social responsibility by giving back to the community and supporting causes related to health, education, and financial literacy. This can help enhance the company' s reputation and brand image.
  10. Continuous Improvement: Continuously monitor performance metrics, gather feedback from customers, and adapt your strategies accordingly. Be open to change and continuously strive for improvement in all aspects of your business operations.

 

chartiskao      ( Date: 13-May-2024 09:16) Posted:

GE is greatly undervalued if you study the article carefully
https://sg.finance.yahoo.com/news/shareholder-likely-sufficient-numbers-table-024523070.htm
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chartiskao
Elite
13-May-2024 09:20     
 
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 Alert Admin
  1. Financial Performance: Focus on improving key financial metrics such as revenue growth, profitability, and return on equity. This involves effective underwriting practices, disciplined expense management, and prudent investment strategies.
  2. Risk Management: Implement robust risk management practices to mitigate insurance and investment risks. This includes maintaining adequate reserves, diversifying investment portfolios, and managing exposure to catastrophic events.
  3. Dividend Policy: Establish a consistent and sustainable dividend policy to attract income-oriented investors. A track record of regular dividend payments and dividend growth can enhance shareholder value and support a higher share price.
  4. Capital Management: Optimize the company' s capital structure to enhance shareholder returns. This may involve share buybacks, debt refinancing, or issuing new equity capital to fund growth opportunities.
  5. Market Positioning: Differentiate the company from competitors by emphasizing its unique strengths, such as product innovation, customer service, or distribution network. A strong brand and reputation can command a premium valuation in the market.
  6. Investor Relations: Maintain transparent communication with investors and analysts to ensure they have a clear understanding of the company' s strategy, performance, and future prospects. Regular updates on financial results, business developments, and industry trends can help build investor confidence.
  7. Strategic Growth Initiatives: Pursue strategic initiatives that create long-term value for shareholders, such as entering new markets, expanding product offerings, or pursuing mergers and acquisitions. However, ensure that these initiatives are aligned with the company' s overall strategy and risk appetite.
  8. Regulatory Compliance: Stay abreast of regulatory developments and ensure compliance with all applicable laws and regulations. Regulatory compliance builds trust with investors and reduces the risk of regulatory fines or penalties that could negatively impact the share price.
  9. Sustainable Practices: Embrace environmental, social, and governance (ESG) principles to demonstrate the company' s commitment to sustainability and responsible corporate citizenship. ESG-focused investors may be more inclined to invest in companies that prioritize environmental and social concerns.
  10. Market Awareness: Monitor market trends, macroeconomic conditions, and industry dynamics that could impact the company' s performance and share price. Stay proactive in adjusting strategies to capitalize on opportunities and mitigate risks.
By focusing on these strategies, a life insurance company can enhance shareholder value and realize the full potential of its share price over time.
Realizing the full potential of a life insurance company involves a combination of strategic planning, customer-centric approach, and adaptability to market trends. Here are some steps to consider:
  1. Understand Market Needs: Analyze market trends, demographics, and customer preferences. Understand what types of life insurance products are in demand and tailor your offerings accordingly.
  2. Product Innovation: Develop innovative life insurance products that cater to different segments of the market. This could include term life, whole life, universal life, or other specialized products like retirement plans or health-related policies.
  3. Customer-Centric Approach: Put the customer at the center of everything you do. Understand their needs, provide excellent customer service, and offer personalized solutions. Building trust and long-term relationships with customers is crucial for the success of any life insurance company.
  4. Technology Integration: Embrace technology to streamline processes, enhance customer experience, and improve operational efficiency. Invest in digital platforms for sales, customer service, and claims processing. Utilize data analytics to gain insights into customer behavior and preferences.
  5. Distribution Channels: Diversify distribution channels to reach a wider audience. This could include partnering with banks, financial advisors, brokers, or selling directly to consumers online.
  6. Risk Management: Implement robust risk management practices to ensure the financial stability of the company. This involves managing investment risks, underwriting risks, and other operational risks effectively.
  7. Regulatory Compliance: Stay updated with regulatory requirements and ensure compliance with all relevant laws and regulations. Non-compliance can lead to significant financial and reputational damage.
  8. Talent Management: Invest in hiring and retaining top talent in the industry. Having skilled professionals in areas such as underwriting, actuarial science, sales, and marketing is essential for the success of the company.
  9. Social Responsibility: Demonstrate social responsibility by giving back to the community and supporting causes related to health, education, and financial literacy. This can help enhance the company' s reputation and brand image.
  10. Continuous Improvement: Continuously monitor performance metrics, gather feedback from customers, and adapt your strategies accordingly. Be open to change and continuously strive for improvement in all aspects of your business operations.

 

chartiskao      ( Date: 13-May-2024 09:16) Posted:

GE is greatly undervalued if you study the article carefully
https://sg.finance.yahoo.com/news/shareholder-likely-sufficient-numbers-table-024523070.html

MrBear12      ( Date: 12-May-2024 18:51) Posted:

Great Eastern Life is an outstanding business with a long history and relationship with OCBC. It is really a diamond gem which many people in the market do not understand. Hence, taking it fully under OCBC will help it finally realise its value because OCBC recognises its true value, unlike the general market. In this festival of Mothering Sunday, OCBC has moved a decisive step towards re-gaining her full rights over her daughter.
Congratulations OCBC!

Happy Mother' s Da
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chartiskao
Elite
13-May-2024 09:16     
 
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 Alert Admin 		GE is greatly undervalued if you study the article carefully
https://sg.finance.yahoo.com/news/shareholder-likely-sufficient-numbers-table-024523070.html

MrBear12      ( Date: 12-May-2024 18:51) Posted:

Great Eastern Life is an outstanding business with a long history and relationship with OCBC. It is really a diamond gem which many people in the market do not understand. Hence, taking it fully under OCBC will help it finally realise its value because OCBC recognises its true value, unlike the general market. In this festival of Mothering Sunday, OCBC has moved a decisive step towards re-gaining her full rights over her daughter.
Congratulations OCBC!

Happy Mother' s Day

MrBear12      ( Date: 12-May-2024 18:15) Posted:

At least from point of view of ocbc shareholder
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chartiskao
Elite
13-May-2024 09:13     
 
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 Alert Admin 		https://www.aia.com/content/dam/group-wise/en/docs/investor-relations/2024/AIA%20Group%202023%20Annual%20Results%20Ann%20(Eng).pdf
vs
https://www.theedgesingapore.com/capital/right-timing/great-easterns-potential
 

chartiskao      ( Date: 13-May-2024 09:09) Posted:

https://sg.milliman.com/-/media/milliman/pdfs/2023-articles/8-23-22_asian_ev_2022_report.ashx

MrBear12      ( Date: 12-May-2024 18:51) Posted:

Great Eastern Life is an outstanding business with a long history and relationship with OCBC. It is really a diamond gem which many people in the market do not understand. Hence, taking it fully under OCBC will help it finally realise its value because OCBC recognises its true value, unlike the general market. In this festival of Mothering Sunday, OCBC has moved a decisive step towards re-gaining her full rights over her daughter.
Congratulations OCBC!

Happy Mother' s Da
 Useful To Me  Not Useful To Me
chartiskao
Elite
13-May-2024 09:09     
 
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 Alert Admin 		https://sg.milliman.com/-/media/milliman/pdfs/2023-articles/8-23-22_asian_ev_2022_report.ashx

MrBear12      ( Date: 12-May-2024 18:51) Posted:

Great Eastern Life is an outstanding business with a long history and relationship with OCBC. It is really a diamond gem which many people in the market do not understand. Hence, taking it fully under OCBC will help it finally realise its value because OCBC recognises its true value, unlike the general market. In this festival of Mothering Sunday, OCBC has moved a decisive step towards re-gaining her full rights over her daughter.
Congratulations OCBC!

Happy Mother' s Day

MrBear12      ( Date: 12-May-2024 18:15) Posted:

At least from point of view of ocbc shareholder
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MrBear12
Supreme
12-May-2024 18:51     
 
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Yells: "Cast all our anxieties on Jesus for He cares for us"
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 Alert Admin 		Great Eastern Life is an outstanding business with a long history and relationship with OCBC. It is really a diamond gem which many people in the market do not understand. Hence, taking it fully under OCBC will help it finally realise its value because OCBC recognises its true value, unlike the general market. In this festival of Mothering Sunday, OCBC has moved a decisive step towards re-gaining her full rights over her daughter.
Congratulations OCBC!

Happy Mother' s Day

MrBear12      ( Date: 12-May-2024 18:15) Posted:

At least from point of view of ocbc shareholder.

MrBear12      ( Date: 12-May-2024 18:13) Posted:

This baby is for keeps.
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MrBear12
Supreme
12-May-2024 18:15     
 
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Yells: "Cast all our anxieties on Jesus for He cares for us"
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 Alert Admin 		At least from point of view of ocbc shareholder.

MrBear12      ( Date: 12-May-2024 18:13) Posted:

This baby is for keeps.
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MrBear12
Supreme
12-May-2024 18:13     
 
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 Alert Admin 		This baby is for keeps.
 Useful To Me  Not Useful To Me
Goldfinger
Supreme
12-May-2024 11:39     
 
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 Alert Admin 		Once OCBC owns the whole of GE Life - it can sell the whole insurance arm lock stock and barrel to any PE firm or top world insurance group which would immediately own one of the biggest life insurance companies in SE Asia.  It would not be only worth $12 billion then.  No need to get any GEL minority shareholder approvals in order to do this.
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