Frasers Property wants Frasers Hospitality Trust to be privatised

The proposed privatisation via trust scheme has an offer of 70 cents.

To unveil the value of its investments, Frasers Property is seeking to privatise its wholly-owned subsidiary, Frasers Hospitality Trust (FHT), through a trust scheme of arrangement with a consideration of 70 cents per scheme stapled security.

In a joint press release, Frasers Property said its scheme consideration represents a premium of 43.8% and 16.7% over the 12-month volume-weighted average prices and recent analyst consensus target price, respectively.

The privatisation plan was intended to enhance and unlock the value of FHT’s stapled security holders.

Further, its scheme will require regulatory and court approvals and will be subject to scheme amendments resolution being approved by stapled security holders, whereby approval of stapled security holders holding an aggregate of 75% or more of the total number of votes cast for and against the resolution is mandated.

The scheme meeting outcome will be decided by scheme stapled security holders, as stated in the announcement.