Frasers Hospitality Trust’s proposed privatisation by sponsor gets SGX in-principle approval

SGX-ST has ‘no objection’ to FHT’s application to delist from the official list of the bourse

The manager of Frasers Hospitality Trust (FHT) said on Friday (Jul 11) that a scheme to privatise the stapled group received in-principle approval from the Singapore Exchange Securities Trading (SGX-ST).

This comes as FHT’s sponsor, Frasers Property, on May 14 announced its proposal to take the stapled group private at S$0.71 per stapled security, marking its second attempt to do so in three years.

Its earlier attempt to privatise FHT in September 2022 at S$0.70 per stapled security was voted down by shareholders.

SGX-ST said it had “no objection” to FHT’s application to delist from the official list of the bourse in connection with the proposed privatisation.

This is on the basis that the scheme will require approval from stapled securityholders of FHT and an opinion from the independent financial adviser that the scheme’s financial terms are fair and reasonable, the manager added.

The scheme will require approvals from a majority of stapled securityholders whose collective holdings of stapled securities represent a minimum of 75 per cent of the value of all stapled securities.

The manager cautioned stapled securityholders from taking action in relation to their stapled securities which could be prejudicial to their interests.

Shares of Frasers Property ended Friday unchanged at S$0.89 and stapled securities of FHT were flat at S$0.70.

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