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Frasers Property should go private to address its depressed stock

The shares not already owned by its controlling shareholder are worth S$530.2 million at current market price; and S$1.28 billion at book value

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Ben Paul

Ben Paul

Published Mon, Aug 29, 2022 · 05:50 AM
    • Frasers Property regards hospitality as a core business and is facilitating the privatisation of Frasers Hospitality Trust
    • Frasers Property regards hospitality as a core business and is facilitating the privatisation of Frasers Hospitality Trust BT FILE

    AFTER taking Frasers Hospitality Trust (FHT) private, Frasers Property (FPL) should perhaps look into organising a privatisation deal for itself.

    Much like FHT, the property group has performed poorly and struggled to garner a decent market valuation. Shares in FPL closed at S$1.05 on Friday (Aug 26), which is a 58.5 per cent discount to the group’s book value as at Mar 31 of S$2.53 per share.

    FPL also happens to be 87.1 per cent-owned by corporate entities linked to Charoen Sirivadhanabhakdi. The 504.9 million FPL shares not already owned by his corporate vehicles currently have a market value of less than S$530.2 million.

    BT Correspondentsfrasers propertyfrasers hospitality trustPrivatisation

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