Frasers Hospitality Trust (FHT)

[RBM]

Offer for FHT is in….
+ S$ 0.70 all-cash. + Acquirer is Frasers Property (FP).
+ As of noon today, Trading Halt is still in-force. Orders not being purged.
+ My first scan of the offer documentation:….I’ll need to be read it again - this time darn carefully. Some blatantly misleading stuff in the pack IMO, e.g. using a 7th April Share Price as the “last transacted price” on the basis it was the “last undisturbed price” - on 8th April, FHT disclosed a rather generic “Response to Media Enquiries” announcement to the SGX. I ain’t buying it.
+ Presentation Pack presents a litany of all FHT’s terrible prospects. Then why is FP aiming to acquire it? Again, I ain’t buying it.

FP needs a 75% vote of the minorities to acquire (TCC, FP, >5% Shareholders will abstain). As things stand, I’ll be among the 25%. Price is too low. I’m hoping 70 cents is just the Opening salvo. HANG ON would be my recommendation to those Vested.

Vested in FHT.

[CY09]

https://links.sgx.com/FileOpen/Press_Rel...eID=731420

FHT privatization deal has failed. Company has resume trading and is back at its pre take over price

[weijian]

This is the 2nd refusal that has happened this year. Paragon REIT refusing Seletar Mall purchase from its Sponsor Cuscaden Peak was the first. Even as hospitality assets are having good near term prospects, is it because of the current financing conditions (whether equity raising or loan) are not conducive? If so, this is really a sign of things to come!

On the other hand, this is also a sign of good corporate governance and independence well demonstrated by the 2 REIT managers.

Right of First Refusal in connection with Interest in Capri by Fraser, Changi City

The Property is under JTC lease with 45 years remaining and consists of a 12-storey hotel operating under the “Capri by Fraser” brand.

The Managers have considered the opportunity and is of the view that acquiring the Property does not meet FH-REIT’s prevailing investment strategy. As such, the Managers have decided not to exercise the ROFR.

https://links.sgx.com/FileOpen/FHT_Annou...eID=792454

[Shrivathsa]

One side of the asset swap that F&N and Thai Bev did, tax rate of FHT goes up in Australia. Net result DPU down 7-8%. Could not have the Trust Board at least objected to the swap or indicated the impact then?

[weijian]

hi Shrivathsa,

Imagine your rich Grandma shifting her assets between her sons/daughters before she dies. As a grandson born by one of her daughters who hasn't been dominant in the family, it is not hard to imagine that the grandson has no say in the inheritance as all the uncles/aunties/bigger cousins dominate the proceedings.