Frasers Property to privatise Frasers Hospitality Trust at $0.71 per unit

The offer price is 28.6% to 56.8% above FHT’s historical net asset value multiples.

Frasers Property Limited (FPL) and its managed entities have announced plans to privatise Frasers Hospitality Trust (FHT) by acquiring all stapled securities held by public investors at $0.71 each in cash.

The offer price represents a 28.6% to 56.8% premium over FHT’s historical net asset value multiples and over 20% above recent trading prices. The privatisation will be done via a trust scheme of arrangement under Singapore’s Take-over Code.

Since FHT’s 2014 listing, challenges such as currency depreciation, rising interest rates, inflation, Brexit, and COVID-19 have constrained growth in distributions and asset value. A strategic review concluded that privatisation by Frasers Property is the best option to unlock value for securityholders.

FHT faces ongoing headwinds including cost pressures, limited scale, and structural risks inherent in the hospitality sector. The deal offers investors immediate liquidity at a premium and greater certainty amid a difficult market environment.

The transaction now awaits approval from FHT stapled securityholders.