S’pore-listed Frasers Hospitality Trust tumbles 24% after privatisation deal fails

SINGAPORE – The shares of Frasers Hospitality Trust (FHT) tumbled 24 per cent on Tuesday morning after a $1.35 billion proposal to take the trust private fell through.

The stock was down by as much as 24.8 per cent to 53 cents at 9.20am, after a trading halt was lifted. Its previous close was 70.5 cents last Friday.

FHT is a global hotel and serviced residence trust listed on the Singapore Exchange, and is a stapled group comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust.

Frasers Property, part of Thai tycoon Charoen Sirivadhanabhakdi’s TCC Group, offered to buy out the remaining stake in the trust it does not already own at 70 cents per share, which is above book value.

On Monday, 74.88 per cent of shareholder votes were in favour of the proposal, narrowly missing the 75 per cent needed for the resolution to pass.

FHT owns 14 assets in Asia, Australia and Europe, such as hotels and serviced apartments. In Singapore, it owns the InterContinental Singapore hotel in Middle Road, and serviced residence Fraser Suites Singapore in River Valley.