atans1

OCBC: Value to be unlocked II

In Banks on 26/04/2010 at 4:37 am

Sometime in March, I analysed how valuable GE Life is to OCBC based on the price that Prudential is paying for AIA. I said  (now revised post to take account of the embedded valued -EV – revealed in the just released 2009 annual report) that the value to OCBC of its GE stake (based on the AIA valuation that the Prudential is working on) is S$3.15  share or S$10.5 billion in total. http://atans1.wordpress.com/2010/03/08/ocbc-value-to-be-unlocked-cash-returned-to-shareholders/

But I doubted that the value would be unlocked given that without GE Life OCBC would be only an SME bank its pretensions in private banking and investment banking notwithstanding.

http://atans1.wordpress.com/2010/03/17/ocbc-reward-for-avoiding-balls-up/
http://atans1.wordpress.com/2010/04/13/ocbc-close-down-the-investment-bank/

But given the rumours that OCBC is on ANZ Bank’s target list, who knows except the controlling shareholder of OCBC whether value will be unlocked.

Tomorrow I will discuss why DBS should organise a consortium to takeover and dismember OCBC.

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  1. [...] Is GE Life fairly valued? In Uncategorized on 03/05/2010 at 4:40 am Based on friday’s closing price of $15.66,  GE Life is trading at  1.27x 2009 ‘s  Embedded Value (the sum of net assets plus the current value of future profits from existing policies) of $13.167 a share. I have argued that based on what PRU is paying for AIA, GE Life’s value should be unlocked by OCBC http://atans1.wordpress.com/2010/04/26/ocbc-value-to-be-unlocked-ii/ [...]

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