OCBC's bid for Great Eastern Life to boost sector valuations

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OCBC's bid for Great Eastern Life to boost sector valuations
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pstrongspan style="font-size:11pt; font-variant:normal; white-space:pre-wrap"span style="font-family:Arial,sans-serif"span style="color:#000000"span style="font-weight:700"span style="font-style:normal"span style="text-decoration:none"OCBC has been a shareholder in Great Eastern Life since 1958.

The bid for Great Eastern Life by Oversea-Chinese Banking Corporation is expected to positively impact the valuation of its peers, Prudential and AIA, in the Asian Life Insurance market.

The OCBC bid values Great Eastern Life at 0.70x P/EV, 1.54x P/B, and 15.6x P/E, based on FY 2023 numbers. Existing shareholders will still receive the FY 2023 tax-exempt dividend of 40 cents per share. The bid increases Great Eastern Life's valuation from 0.51x P/EV to 0.70x, 1.12x P/B to 1.54x, and 11.4x P/E to 15.6x P/E.

The acquisition is expected to add 0.2 percentage points to OCBC's group ROE and reduce its CET1 ratio by 0.6 percentage points, potentially limiting short-term capital returns....there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

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