Shares & Derivatives
70 cents offer for Frasers Hospitality Trust  – is it yet another low ball offer?
By Dr Wealth  •  June 13, 2022
Frasers Hospitality Trust (FHT) is a REIT with 14 properties and 9 cities with a portfolio value of S$2.0 billion. FHT approached its sponsor Frasers Property Limited (FPL) for a proposal to optimise value for its unitholders, and FPL has provided an offer of S$0.70 in cash to privatise FHT. The offer is at a price to book premium of 1.07x and is also a premium to the trading metrics as below. The offer is mainly conditional upon FHT’s unitholders and regulatory approval. There is also a material adverse effect clause to protect FPL and allow FPL to not proceed with the offer should FHT’s net tangible assets decline by more than 10% or $125.9 million. Trying to learn how to invest in REITs? Download your FREE REITs investing guide and start creating your passive dividend income today Similar to any other acquisition, it is currently not compulsory for FHT’s unitholders to tender their units as FPL...
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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