Frasers Centrepoint takes over all of UK unit for £5.6m and debt

PROPERTY developer Frasers Centrepoint Ltd (FCL) is taking full ownership of 75 per cent subsidiary Frasers (UK) for £5.6 million (S$9.9 million) in cash and assumption of debt.

The existing joint venture agreement with partner SQ International will be terminated following completion.

The net tangible asset value of Frasers UK attributable to SQ International is about S$64.7 million as at July 31, 2017. FCL will also take over a S$9.2 million shareholder's loan owed by Frasers UK to SQ International at an assigned value of £5.2 million.

The acquisition is not expected to have a material effect on FCL's net tangible asset per share and earnings per share for the current financial year.