Considering the FLT-FCOT merger holistically

THE consolidation in the S-Reits market that began two years ago looks set to continue in 2020, with two proposed mergers already announced. The proposed merger of Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) will be the first to be voted on this year.

Interest in the proposed merger of FLT and FCOT has picked up ahead of the two Reits' upcoming EGMs and scheme meeting on March 11, 2020, and a few unitholders have raised a number of questions about the deal. Some FCOT unitholders have raised questions about the scheme consideration they are being offered and the timing of the deal, and some others have asked about the role the two Reits' sponsor, Frasers Property Limited (FPL), should play.

These are important points that do warrant a closer look. The Securities Investors Association (Singapore), or SIAS, has therefore helped facilitate some discussions between the two Reits' managers and unitholders, and would like to highlight some of the perspectives shared so that unitholders can make a more informed decision.