Frasers Hospitality Trust indicates no concrete plan to go private

Fraser Residence in Singapore by Frasers HospitalityFraser Residence in Singapore by Frasers Hospitality

Frasers Hospitality Trust indicated Friday it had no concrete plans to pursue a “strategic option,” likely referring to a media report that the REIT may be taken private. 

That followed a Bloomberg report Friday, citing people with knowledge of the matter, that the trust was weighing a plan to go private as the unit price wasn’t reflecting the portfolio’s value. The REIT had board approval to explore taking the trust private and has hired a financial adviser, Bloomberg reported, citing the people.

Frasers Hospitality Trust’s units ended Friday up 5.26 percent at S$0.60.

“From time to time, the managers review strategic options to enhance and unlock value for stapled securityholders of FHT, including but not limited to bona fide proposals from all parties,” Frasers Hospitality Trust said in a filing to SGX Friday. 

“While the managers are exploring such strategic options, there is no certainty or assurance that any transaction will result from such review, and the managers may decide to continue with FHT’s existing business strategy. As of the date of this announcement, no written proposals have been received and no decisions have been taken in this respect,” the trust said.

The hospitality sector globally has taken a hit from travel restrictions aimed at stemming the spread of the Covid-19 pandemic, although signs of recovery have begun to emerge.

 

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