Thai investor TCC Group, the majority shareholder of Singapore-based Frasers Property, is attempting to take Frasers’ real estate investment trust Frasers Hospitality Trust private once again.
TCC Group holds 36.7% of Frasers Hospitality. Frasers Property owns 24.23% of the REIT, according to Frasers Hospitality’s 2024 annual report.
TCC chair Charoen Sirivadhanabhakdi offered 0.71 Singapore dollars ($0.54) for every share it does not own, according to a news release from Frasers. That price places a value on the REIT of SG$1.37 billion ($1.05 billion).
Singapore newspaper The Straits Times said the move represented a “viable option for stapled security holders to immediately realize their investment at a premium to net-asset value and offers strong deal certainty in terms of timing and execution.”
Frasers Hospitality REIT has been listed on the Singapore Exchange since July 2014, where the firm’s per-share price at press time was SG$0.68.
Sirivadhanabhakdi failed in his first attempt at taking the REIT private by the slimmest of margins in June 2022. At the time, his business interests offered SG$0.70 for each share it did not own but received only 74.9% of shareholders’ approval, not the 75% it needed under threshold requirements.
At that time, according to Mingtiandi, the unsuccessful bid’s share offer would have valued the firm at SG$970 million.
Frasers Hospitality's portfolio spans 14 hotels and 3,477 rooms across Asia, Australia and Europe. It includes the 171-room Park International London, 380-room Novotel Melbourne on Collins and 593-room ANA Crowne Plaza Kobe in Japan. The appraised value of the company's hotel portfolio is approximately SG$2 billion, as of Sept. 30, 2024.
Frasers Property owns the Malmaison Hotel du Vin Group with its brands Malmaison and Hotel du Vin together with KSL Capital Partners. Frasers Property owns and manages properties valued at SG$38.9 billion.