Thai billionaire's Frasers Property makes second try to take REIT private, in $1 billion deal
Thai business magnate Charoen Sirivadhanabhakdi's Frasers Property , on Wednesday, made a second attempt to take complete control of Frasers Hospitality Trust in a deal valuing the REIT at S$1.37 billion ($1.1 billion).
The billionaire's family and Frasers Property already own a little over 60% of the hospitality real estate investment trust's (REIT) units, and have offered S$0.71 for each unit they do not own.
Frasers Property's first buyout attempt, made in 2022 and worth S$0.70 per share, failed to get shareholder support.
However, the Singapore-based developer's attempt is likely to succeed this time due to a compelling offer price, softening outlook of the hospitality sector and the REIT's small asset size, which limits its growth potential, said Vijay Natarajan, analyst at RHB Bank Singapore.
The REIT, which debuted on the Singapore Exchange in 2014, manages a portfolio of 14 hospitality assets—including hotels and serviced residences—across nine cities in Asia, Australia, and Europe.