Hot stock: Frasers Hospitality Trust up 5.3% on proposed privatisation deal

STAPLED securities of Frasers Hospitality Trust (FHT) rose on Monday (Jun 13), after a unit of Frasers Property said it was planning to take the hospitality real estate investment trust (Reit) private via a trust scheme of arrangement.

FHT was up 5.3 per cent or S$0.035 to trade at S$0.695 at 1 pm on Monday. It had called for a trading halt before the market opened on Jun 9, and resumed trading after the midday break on Monday.

No married deals were recorded, according to ShareInvestor data.

As at 1.40 pm, stapled securities of FHT have eased slightly to trade at S$0.69, up S$0.03 or 4.6 per cent. The counter saw 50.4 million shares worth S$34.8 million changing hands.

Meanwhile, shares of Frasers Property were trading at S$1.11 as at 1.40 pm, up S$0.01 or 0.9 per cent.

On Monday morning, Frasers Property Hospitality Trust Holdings, a wholly-owned subsidiary of Frasers Property, said it would acquire all of FHT’s stapled securities – other than those held by TCC Group Investments and Frasers Property and its subsidiaries – at a scheme consideration of S$0.70 each in cash.

SEE ALSO

Frasers Property to privatise FHT at S$0.70 per stapled security 

Thailand’s TCC seeks loan for Frasers Hospitality Trust privatisation: sources

The scheme consideration represents a premium of 43.8 per cent over the 12-month volume-weighted average price per stapled security up to and including Apr 7, the last full trading day prior to the announcement of its strategic review.

It also represents a premium of 16.7 per cent over recent analyst consensus of the counter’s target price in 2022.

The independent directors of FHT noted that the scheme is the best option for stapled securityholders to realise their investments, given that it represents a credible offer from a financial perspective and offers strong deal certainty for stapled securityholders in terms of timing and execution.