FHT privatisation offers value for FHT’s securities holders but not shareholders of Frasers Property

INVESTORS looking for plays on international travel may soon find themselves with one fewer option on the Singapore Exchange.

On Sep 12, stapled securities holders of Frasers Hospitality Trust (FHT) will meet at an extraordinary general meeting to decide whether to approve the proposed privatisation of FHT via a scheme of arrangement.

The deal is a good one for FHT unitholders as the offeror, which is a wholly-owned subsidiary of Frasers Property Limited (FPL), is paying more than book value. FHT unitholders will receive S$0.70 in cash for each FHT stapled security that FPL and TCC Group Investments do not already hold.