The recent request by a minority shareholder of Great Eastern Holdings (GEH) : G07 0% to table resolutions at its upcoming annual general meeting (AGM) “does not satisfy all of the requirements” for a requisition to be moved, the insurer said on Wednesday (Mar 6).

The Business Times reported on Mar 1 that a group of minority shareholders of GEH, led by independent investor Ong Chin Woo, had sought to table three resolutions at the upcoming AGM: to withhold directors’ fees, to change the share option schemes of employees, and to appoint an independent financial adviser to explore options to enhance shareholders’ value.

In its regulatory filing on Wednesday, GEH said it responded to “a minority shareholder, acting on behalf of a group of minority shareholders” after seeking legal advice.

It highlighted as well that its share price depends on “many factors”, as it addressed the criticisms that the counter had not kept pace with the increase in its net asset value (NAV) and embedded value.

GEH said embedded value is an equity valuation measure used in insurance companies, based on estimates of present value of projected future profits plus the company’s NAV.

“GEH’s management is aware that while GEH shares currently trade above its NAV, they trade below its estimated (embedded value) as at end-2023,” said the insurance arm of OCBC.

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The group of minority shareholders’ concerns revolve around the “depressed” share price of the insurer and continued valuation decline over the last decade, despite its “strong financial position”.

Ong previously told BT that he had brought up these issues to GEH’s board several times, and wanted to align the interests of the board, the executives and the shareholders.

Shares of GEH closed at S$18.20, 0.6 per cent higher, on Wednesday, before the filing was published.