WBL

WBL: OCBC, which holds 5.85% of WBL, notes that the cash offer of $3.41/sh is below the latest reported WBL NAV at $3.48/sh. It further notes that the offer price might be reduced for any dividends declared, responding to The Straits Times’ queries on the bank’s plans for its WBL stake. OCBC however is “currently reviewing its options”. The concerns of OCBC could be a setback to Straits Trading’s general takeover offer for WBL before it is even formally tabled. A remisier notes, “if a credible large sh/h expresses that the offer is not enough, the market may believe it. The market may see it as a cue that they [Straits Trading] may up the offer.” Straits Trading flagged a possible general offer for WBL on 26 Nov, though it first needs to complete the purchase of 64m shares (23.6%) from funds managed by Aberdeen and Third Avenue. ~68.5m new Straits Trading shares will be issued to pay for the shares from the funds. The deal needs sh/h approval. After this, Straits Trading’s stake in WBL will rise, triggering a mandatory GO for the rest of the co. WBL sh/h will have two options, i) receive 1.07 new Straits Trading sh for every WBL sh they hold, or ii) sell each WBL sh for $3.41 to Straits Trading. OCBC did not give a view on the stock option, only the cash option. OCBC’s insurance unit, Great Eastern, has 18.07% of WBL. It is unclear of GE shares its parent’s concerns over the Straits Trading offer.