[SINGAPORE] Frasers Hospitality Trust (FHT) is undergoing a strategy review, though there is currently no certainty if its existing business strategy will change.
This follows a failed privatisation bid made by managers of the stapled group in 2022 and a trading activity surge in November and December 2024, when the stapled security soared around 40 per cent as its trading volume hit highs. The manager said then that it was “not aware” of reasons for the surge.
“As part of this review, various options (including exploring options with the sponsor of FHT) are being considered to ensure alignment with the interests of stapled securityholders,” the manager said on Wednesday (Apr 23).
However, it added that “there is no certainty or assurance that any transaction in respect of the stapled securities will arise, and the managers may decide to continue with FHT’s existing business strategy”.
The manager added that it will make announcements in due course, should any material developments that warrant disclosure arise. It urged investors to exercise caution and refrain from taking action with respect to their FHT stapled securities that may be prejudicial to their interests.
FHT is a stapled group comprising Frasers Hospitality Reit and Frasers Hospitality Business Trust.
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Privatisation bid
In 2022, a bid to privatise the Singapore-listed real estate investment trust (Reit) fell through as it failed to garner sufficient approval from stapled securityholders.
The resolution fell shy of the minimum 75 per cent approval required for it to be passed at the September scheme meeting in 2022. It attained favourable votes representing 74.88 per cent of units from around 70.91 per cent of stapled securityholders.
Frasers Property Hospitality Trust, a wholly owned subsidiary of FHT’s sponsor Frasers Property, proposed to acquire all FHT stapled securities aside from those held by itself, its subsidiaries and TCC Group Investments at a cash consideration of S$0.70 apiece.
The privatisation, if successful then, would have erased more than S$1.3 billion worth of value from the local bourse.
Stapled securities of FHT ended Tuesday 1.7 per cent or S$0.01 higher at S$0.60.
