Should you take up the Frasers Hospitality Trust privatisation offer?

TL;DR

Frasers Property has announced an offer to privatise Frasers Hospitality Trust at $0.70 per unit.
The EGM and scheme meeting will be held on 12 September 2022, and will require a 75% approval from unitholders.
We would take up the offer given the attractiveness of the offer price, limitations to FHT’s growth if it remains listed given its small size, as well as uneven recovery across FHT’s key markets.
With the current market price of FHT at S$0.70, some investors may also consider selling the units directly in the market, especially when the likelihood of a higher competing offer is low.

If you are a Frasers Hospitality Trust (FHT) unitholder, you’d probably have received the documents for the extraordinary general meeting (EGM) and scheme meeting which will be held on 12 September 2022. If you are still wondering whether to take up the offer, here’s a quick guide to walk you through. ...

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