[SINGAPORE] Frasers Hospitality Asset Management, as the manager of Frasers Hospitality Trust (FHT), announced on Wednesday (May 14) the proposed privatisation of the stapled securities group for S$0.71 per scheme stapled security via a trust scheme of arrangement.
The manager in a company statement released on Wednesday explained that the macroeconomic environment has undergone further adverse changes, with a weaker foreign exchange rate against the Singapore dollar and a higher interest rate environment, which has made it more difficult for the managers of FHT to meaningfully grow its distribution per stapled security (DPS) and net asset value.
This is the second time Frasers Property has attempted to privatise the stapled group, after attempting to do so in September 2022 for S$0.70, though it failed back then after being voted down by shareholders.
As at the time of the announcement, FHT has issued about 1.9 billion stapled securities.
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