FHT’s failed privatisation not a complete surprise as unitholders bet on tourism recovery

THE failed attempt by Frasers Hospitality Trust (FHT) to go private came as a surprise to some market observers.

Opposition to the cash offering of S$0.70 per stapled security – at a 7 per cent premium to net asset value (NAV) – by sponsor Frasers Property (FPL) was generally muted.

After all, the privatisation offer seemed generous enough – given the hospitality-focused real estate investment trust (Reit) had traded at an average discount of 19 per cent to its NAV since its initial public offering (IPO) in 2014.