Frasers Property - CGS-CIMB Research 2022-06-13: Proposes To Take Frasers Hospitality Trust Private

Frasers Property - Proposes To Take Frasers Hospitality Trust Private

  • Frasers Property Hospitality Trust Holdings Pte Ltd, a wholly-owned subsidiary of Frasers Property (FPL, SGX:TQ5) is proposing to take private Frasers Hospitality Trust (SGX:ACV) through a trust scheme of arrangement. The offeror is proposing to acquire all of Frasers Hospitality Trust’s stapled units, other than the stapled units held by TCC Group Investments Ltd and Frasers Property.
  • As at 13 Jun, the date of announcement, Frasers Property owned 25.8% of Frasers Hospitality Trust units while TCC Group held 37.72%. The scheme consideration of S$0.70 per Frasers Hospitality Trust unit implies 1.07x P/NAV and represents a 43.8-48.5% premium over Frasers Hospitality Trust’s 1-, 3-, 6- and 12-month VWAP. The deal is subject to the approvals of unitholders, the court and regulators.
  • The transaction is in line with Frasers Property’s long-term strategy of leveraging on its synergistic multi-asset class capabilities to create value, with hospitality remaining one of its core businesses. It will also allow Frasers Property to increase its investment in hospitality assets and to leverage on its deep understanding of Frasers Hospitality Trust’s assets and adopt a disciplined approach to drive performance. Frasers Property remains cautiously optimistic on the long-term prospects of the hospitality sector.
  • We leave our FY22-24F estimates for Frasers Property unchanged pending the transaction’s completion, and maintain our RNAV at S$2.57 and target price at S$1.41 (still based on 45% discount to RNAV).

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

LOCK Mun Yee CGS-CIMB Research | 2022-06-13
SGX Stock Analyst Report ADD MAINTAIN ADD 1.410 SAME 1.410

Previous report by CGS-CIMB:
2022-02-10 Frasers Property - Starting The Year On Steady Footing

Relevant links:
Frasers Property Analyst Report,
Frasers Property Target Price,

Frasers Property Share Price History,
Frasers Property Announcements,
Frasers Property Dividends/ Corp Actions,
Frasers Property News Articles


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