Frasers Property Makes Second Bid to Privatize Its Hospitality Reit in $1.37b Deal

A bid in 2022 at a valuation of $1.35b failed when it fell short of shareholder threshold

- Sue-Ann Tan

Thai billionaire Charoen Sirivadhanabhakdi's Frasers Property is making a second attempt to take private its hospitality real estate investment trust at a valuation of $1.37 billion.

The company on May 14 announced an offer of 71 cents in cash per stapled security for Frasers Hospitality Trust (FHT).

This represents a 7 per cent premium to FHT's last traded price of 66.5 cents before the counter announced a trading halt on May 13. It is also a 36.3 per cent premium to the FHT's volume-weighted average price for the 12-month period up to the last trading date.

Frasers Property owns a 24.23 per cent stake in FHT, while its majority shareholder and Mr Charoen's family conglomerate, TCC Assets, has a 36.72 per cent stake.

An attempted privatization in 2022 at 70 cents per stapled security—which valued FHT then at $1.35 billion—failed when it fell short of a 75 per cent shareholder threshold required.