Home News Broker's Calls

Frasers Property's privatisation offer an opportunity for FHT unitholders to unlock value: CGS-CIMB

Khairani Afifi Noordin
Khairani Afifi Noordin6/14/2022 10:43 AM GMT+08  • 2 min read
Frasers Property's privatisation offer an opportunity for FHT unitholders to unlock value: CGS-CIMB
Fraser Suites, a serviced residence that's part of FHT's portfolio / Photo: Samuel Isaac Chua
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Frasers Property’s (FPL) proposal to take Frasers Hospitality Trust (FHT) private through a trust scheme of arrangement offers existing FHT unitholders an opportunity to unlock value, says CGS-CIMB Research analyst Lock Mun Yee.

This is as the scheme consideration is at a premium to its book value, she adds. Lock notes that the scheme consideration of 70 cents per unit implies 1.07x P/NAV, representing a 43.8%-48.5% premium over FHT’s one-, three-, six- and 12-month volume-weighted average price (VWAP).

“The transaction is in line with FPL’s long-term strategy of leveraging on its synergistic multi asset class capabilities to create value, with hospitality remaining one of its core businesses. It will also allow FPL to increase its investment in hospitality assets and to leverage on its deep understanding of FHT’s assets and adopt a disciplined approach to drive performance,” says Lock.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.