According to the offer document, FHT faced obstacles in growing its distributions per stapled security (DPS) and NAV. This is despite yield accretive acquisitions and AEIs to enhance the properties. The strengthening Singapore dollar against FHT’s operational currencies offset gains made by FHT’s operational currencies.
Proxy advisors ISS and Glass Lewis have recommended that stapled securityholders of Frasers Hospitality Trust (FHT) vote for the amendment of the trust deed at an EGM to be held on Sept 12, 2022 at 10 am, and for the privatisation in a scheme meeting to be held also on Sept 12 at 10.30 am.
FHT’s sponsor and major stapled security holder Frasers Property (FPL) is offering minority investors 70 cents for each FHT stapled security it does not own. The privatisation offer – via a scheme of arrangement - allows investors to realise their investment in FHT at a premium to net asset value (NAV).
