Oversea-Chinese Banking Corp said on Tuesday it will accept a bid for commodities and property firm Straits Trading, which will net it a one-time gain of about $127.5 million (US$91.73 million).
OCBC, Singapore's third largest lender, said it will sell its 6.2 per cent stake in the firm to Tecity, drawing the curtains on a two-month takeover tussle involving two families with close ties to the bank.'The 6.2 per cent shareholder held by OCBC Bank would have lost the added value of being part of the combined stake of 33.4 per cent' held by the bank and related firms, the lender said in a statement explaining its decision to sell.
The fight for Straits Trading began on Jan 6 when Tecity, a firm controlled by the family of late OCBC chairman Tan Chin Tuan, offered to buy the firm for $5.70 a share, valuing the takeover target at $1.86 billion.
The Lee family that controls OCBC countered with a higher offer, sparking a bidding war that ended when Tecity raised its offer price to $6.70 a share, or about 18 per cent above its original bid.
OCBC's insurance arm Great Eastern Holdings said on Monday it would sell its 19 per cent holding in Straits Trading to Tecity, while the Lee family conceded defeat and said it would accept its rival's bid on Sunday.
Straits Trading is one of Singapore's oldest firms with interests in tin mining, smelting and metals trading as well as hotels and property. -- REUTERS
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