Singapore-based Frasers Hospitality Trust is considering a plan to go private amid concerns that its share price doesn’t reflect the company’s value, people with knowledge of the matter said. Its shares jumped.
The real estate investment trust has received board approval to explore a privatisation and hired a financial adviser, the people said, asking not to be identified because the matter is confidential. The company may choose not to proceed if the deal structure isn’t favourable, they added.
Shares of Frasers Hospitality spiked as much as 7.9%, the most since November 2020, after the Bloomberg News report. The stock is currently trading 5.3% higher, giving it a market value of S$1.16 billion ($850 million). The benchmark Straits Times Index is down 0.8%.