FCOT unit holders advised to vote for FLT merger

Deal is NAV-dilutive, but DPU-accretive for FCOT unit holders

Published Fri, Feb 14, 2020 · 09:50 PM

Singapore

THE offer by Frasers Logistics & Industrial Trust (FLT) to acquire all units of Frasers Commercial Trust (FCOT) is fair and reasonable, the independent financial advisor to FCOT unit holders said on Friday.

Although the deal is dilutive to FCOT unit holders on a net asset value (NAV) basis and implies a trailing distribution yield of 5.71 per cent - almost flat from FCOT's 5.75 per cent yield before the merger was announced - FCOT unitholders should vote in favour of the merger, advisor Evercore wrote in a scheme document published on Friday.

Evercore noted that the merger of FCOT into the …