OCBC pares down stake in Robinsons

Singapore's smallest bank, OCBC and insurer Great Eastern will sell off majority of their 29.9% stake in listed retailer Robinsons to Auric Pacific, a company linked to Indonesian tycoon Mochtar Riady. The stake, which is sold off at a price of S$7.90 per share will reap OCBC and Great Eastern a total of S$203 million. Moreover OCBC and Great Eastern seems to have a good deal from this stake sale as the purchase price represents a 15% premium over last traded price of S$6.75.

OCBC expects to realize a consolidated net gain of S$98 million from the sale, which should be completed in the second quarter of 2006.The combined stake of OCBC and its subsidiaries in Robinson will fall to 6.1% from 35.96% as a result of the sale. The stake sale have been speculated since last year as banks have to pare down stakes in non-financial institutions to meet government set regulations.