Wolf Money(The death of the Singapore Stock Market-My view on the final offer for Great Eastern Holdings)

(The Death of the Singapore Stock Market)

Great Eastern Holdings(extract from end of month portfolio update)

Today we are here to attend the funeral of the Singapore stock market. Besides the low valuation suffered by our market participants, investors of our market have to navigate the complexity of low ball offers from majority shareholders. One would expect a local banking giant to lead as a beacon for good corporate governance. Unfortunately, they have decided to turn a blind eye and join the dark side of the forces, blatantly ignoring the IFA report to pay a fair price for GEH. I could have walked away quietly by accepting the offer for a gain in excess of 40% in 3 months, but I can’t walk away without my conscience pushing me to express my thoughts on this whole takeover saga. I started the journey by supporting Chin Woo. His leadership is top-notch. I think most minority shareholders will agreed, without Chin Woo’s effort, the minority would have been in a much inferior position. My heartfelt thank you to Chin Woo and his team. It is amazing how the group of minority came together to take the fight to OCBC. We are under no illusion that it is going to be a David vs Goliath match up, but we never gave up till this moment. Unfortunately, given the uneven playing field, it is almost an impossible task. Regulations are there to protect minority investors, it should not aid any majority shareholder’s quest to privatise companies cheaply. 

All those grand statements of upholding fairness in ESG report is just paper that can be flashed down the toilet bowl when a takeover of an undervalued subsidiary is involved. The final low ball offer will permanently damage the integrity of our market. Without proper oversight on investor protection, The Singapore market is fast becoming a non-investable market. I strongly urge the authorities to put the wrong thing right. SGX, MAS and SIC need to force OCBC to come out with a fair offer within this current offer period. If nothing is done, copy cats will be emboldened. OCBC’s strong-arm treatment of GEH minority is totally out of character and unacceptable. I urge those who care about our stock market to respond. This is one battle the GEH minority can not lose. Those neutral who think OCBC GEH saga is none of their business. Think again. The signal sent out by this takeover will have serious repercussions to your investment in our market. It can be Great Eastern now, it can be other companies which you have an interest next. The negative message sent “The weak should bow to the powerful and rich”. I hope the authorities can take a stand on this case. I suggest the suspension of the 6 months rule for OCBC to cure the IFA opinion since OCBC had no intention of making good to a minimum float for GEH shares. It will take away the uncertainty for the minorities from the 6 months suspension. 

This takeover episode touches the raw nerve of fairness in our society. Is there anyone from the authorities brave enough to take a stand? This madness has to stop. Enough is enough. Is there any decency left in our market? As I cried the death of our stock market. 

*Not an inducement to buy or sell. Kindly do your own due diligence

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