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Product cover image for Great Eastern Holdings: Buyout Offer from Oversea-Chinese Banking Corporation

Great Eastern Holdings: Buyout Offer from Oversea-Chinese Banking Corporation

Allaudeen Hameed, Ruth S. K. Tan, Ling Yue

Product #:W44784
Supplier:Ivey/NUS
Discipline:Finance
Setting:Singapore, 2024
Details:Case (PDF) • 17 pages • 2025-09-19

Subjects:

Finance and investing

Industries:

Financial service sector

Geography:

SingaporeAsia
Your Price:$9.71

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Great Eastern Holdings Ltd. (GEH)—a leading insurance company offering life and general insurance products, along with asset management services across Southeast Asia—received a buyout offer on May 10, 2024, from its major shareholder, Oversea-Chinese Banking Corporation Ltd. (OCBC). The offer was to acquire the remaining 11.56 per cent stake for S$1.4 billion. The offer price of $25.60 per share was 36.9 per cent higher than GEH’s last traded price of $18.70 but 30 per cent lower than GEH’s embedded value per share of $36.59 as of December 31, 2023. GEH minority shareholders needed to make an informed decision based on the valuation of GEH and weigh the trade-offs of accepting the offer. Key considerations included fair valuation, the interest of minority shareholders, OCBC’s strategic intention, and the potential delisting of GEH from Singapore Exchange Ltd.

Learning Objectives

This case is designed for undergraduate and Master of Business Administration courses in corporate finance and financial management. The case is well suited for students who have already completed an introductory finance course. After working through the case and assignment questions, students will be able to do the following:

  • Evaluate the intrinsic value of equity of an insurance company.
  • Recommend a fair price for the buyout offer.
  • Analyze the buyout offer from different shareholders’ perspectives by weighing the risks and benefits.
  • Understand buyouts as a business strategy.
  • Evaluate the impact of a potential delisting on the stock exchange.
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Case Study: Great Eastern Holdings: Buyout Offer from Oversea-Chinese Banking Corporation (English version) | Ivey Publishing