Frasers Property Makes Offer To Privatise Frasers Hospitality Trust (The Straits Times)
June 14, 2022 – (The Straits Times) Frasers Property is privatising subsidiary Frasers Hospitality Trust (FHT) with an offer of 70 cents per unit.
The offer price represents a premium of 43.8 per cent over the 12-month volume-weighted average price of FHT and is 16.7 per cent over a recent analyst consensus target price.
FHT owns some $2 billion worth of hospitality assets such as hotels and service apartments in key cities in Asia, Australia and Europe. The properties it owns in Singapore include the InterContinental Singapore hotel.
FHT had considered various options, such as an expansion via mergers or acquisitions, before concluding on the privatisation by Frasers Property.
“Muted growth in our key hospitality markets is one of the key reasons why we are not able to deliver distribution per stapled security and net asset value growth,” said Ms Eu Chin Fen, chief executive of FHT’s managers.
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