money 쐽 THE STRAITS TIMES SATURDAY, NOVEMBER 21 2009 PAGE C26
OCBC to sell
stake in
trust firm BMT
Bank’s 3.77m shares to
be sold to individual
investor for cash
BY DENNIS CHAN
DEPUTY MONEY EDITOR
OCBC Bank is making a clean break from
its long association with British and Ma-
layan Trustees (BMT). The bank has
agreed to dispose of its 43.05 per cent
stake in the 85-year-old company to an
individual investor, Mr Enrico Spinola.
Under the deal, OCBC will sell its en-
tire 3.77 million BMT shares to Mr Spino-
la for cash. The payment comprises a
fixed and a variable component.
The fixed component amounts to
$5.48 million, which is based on 43.05
per cent of BMT’s net asset value, exclud-
ing the value of marketable securities.
The variable payment hinges on
OCBC’s share of the value of marketable
securities as at a yet to be determined
date. For illustrative purposes, the mini-
mum offer price is $1.455 a share. The ac-
tual amount is likely to be significantly
higher.
BMT stock, which is highly illiquid,
was last traded on Oct 23 at $13 with 100
shares traded. Over the last 12 months,
only 5,200 shares have changed hands.
On the decision to sell BMT, OCBC
noted that its stake in BMT is non-majori-
ty and non-strategic. It has been a pas-
sive shareholder and has not been in-
volved in the management of the busi-
ness.
It “makes sense to realise the invest-
ments and redeploy the proceeds for oth-
er purposes”, said OCBC yesterday in a
stock exchange filing.
The deal is conditional on the approval
of the Monetary Authority of Singapore.
A deadline of March 4 next year has
been set for the preconditions to be ful-
filled.
Once the regulatory nod is obtained,
Mr Spinola will make a mandatory gener-
al offer for the remaining BMT shares he
does not already own at no less than
$1.455 a share. Little is known about the Runners and their dogs make a dash for it in the 1.5km Doggie Road Race, part of yesterday’s Bull Charge 2009. ST PHOTOS: DESMOND WEE
man who was described in the stock ex-
change filing as a financial investor who
holds a diversified global investment port-
folio. He is believed to be Italian.
“Taking into account the growth of fi-
Bullish for
nancial services in Singapore, the purchas-
er believes that the purchase of the sale
shares will be a sound investment,” the
a good cause
filing said.
OCBC aside, the other major sharehold- ONE of Singapore’s best-loved charity
ers of BMT include the Nyalas Rubber Es- fun runs fortunately did not turn into a
tates and the estate of Sat Alsagoff, at 20 fun swim – the rain held off yesterday.
per cent and 18 per cent respectively. The Singapore Exchange (SGX)
OCBC’s ties with BMT stem from the launched the Bull Charge 2009, a dash by
early years when they and other listed business types around the Central Busi-
companies, such as Robinson & Co, The ness District, at The Float @ Marina Bay.
Straits Trading Co and Bukit Sembawang Guest of honour Vivian Balakrishnan,
Estates, were part of a diversified group Minister for Community Development,
of businesses under the influence of the Youth and Sports, flagged off more than
Lee Rubber family. 3,000 runners from SGX-listed compa-
BMT, which was incorporated in 1924, nies and the financial industry.
provides trustee services to a wide clien- The 3.2km route took them to Marina
tele ranging from individuals to corpora- Promenade and Collyer Quay.
tions and institutions. Its trustee and ad- This year also introduced a new
visory services cover matters that include bulls-on-wheels highlight, which saw 12
estate planning, unit trusts, custodian- chief executives and top management of
ship, charitable and maintenance trusts (From left) SGX chairman J.Y. Pillay, Minister for Community Development, Youth and Sports corporations racing down the tracks in
and power of attorney. Vivian Balakrishnan and MediaCorp artists Rebecca Lim and Andie Chen announcing the sum – colourfully painted trishaws.
dennis@sph.com.sg over $2 million – raised by the fun run this year, which will go to 12 charities. ESTHER TEO