Frasers Hospitality Trust undergoes strategic review
This follows a failed privatisation bid made by managers of the stapled group in 2022 and a trading activity surge in November and December 2024, when the stapled security soared around 40 per cent as its trading volume hit highs. The manager said then that it was 'not aware' of reasons for the surge.
'As part of this review, various options (including exploring options with the sponsor of FHT) are being considered to ensure alignment with the interests of stapled securityholders,' the manager said on Wednesday (Apr 23).
However, it added that 'there is no certainty or assurance that any transaction in respect of the stapled securities will arise, and the managers may decide to continue with FHT's existing business strategy'.
The manager added that it will make announcements in due course, should any material developments that warrant disclosure arise. It urged investors to exercise caution and refrain from taking action with respect to their FHT stapled securities that may be prejudicial to their interests.
FHT is a stapled group comprising Frasers Hospitality Reit and Frasers Hospitality Business Trust.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Privatisation bid
In 2022, a bid to privatise the Singapore-listed real estate investment trust (S-Reit) fell through as it failed to garner sufficient approval from stapled securityholders.
The resolution narrowly missed the minimum approval level of votes representing 75 per cent of units required for it to be passed at the September 2022 scheme meeting. It attained favourable votes representing 74.88 per cent of units from around 70.91 per cent of stapled securityholders.
In June 2022, Frasers Property Hospitality Trust, a wholly owned subsidiary of FHT's sponsor Frasers Property, proposed to acquire all FHT stapled securities aside from those held by itself, its subsidiaries and TCC Group Investments at a cash consideration of S$0.70 apiece.
The proposed privatisation, which would have erased more than S$1.3 billion worth of value from the local bourse if it succeeded then, came after the hospitality-focused S-Reit announced a strategic review of its business earlier in April that year.
Challenges FHT faced included difficulty in improving its distribution per stapled security and net asset value amid subdued growth of the hospitality sectors of markets it operates in, alongside the Russia-Ukraine war compounding pandemic-induced supply chain disruptions and raising costs.
Stapled securities of FHT ended on Tuesday 1.7 per cent or S$0.01 higher at S$0.60.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
44 minutes ago
- Business Times
Do Kwon pleads guilty to fraud over US$40 billion Terra collapse
[NEW YORK] Terraform Labs co-founder Do Kwon pleaded guilty to charges in a US fraud prosecution tied to the US$40 billion collapse of the TerraUSD stablecoin in 2022. Kwon pleaded guilty to conspiracy and wire fraud under an agreement with prosecutors at a hearing in New York on Tuesday (Aug 12). The 33-year-old, dressed in a yellow prison jumpsuit, also agreed to forfeit US$19.3 million and some properties as part of the plea deal. 'I knowingly agreed with others to defraud, and did in fact defraud, purchasers of cryptocurrencies issued by my company, Terraform Labs,' Kwon said, reading from a statement. 'What I did was wrong and I want to apologise for my conduct. I take full responsibility.' Kwon was charged in both South Korea and the US in connection with the implosion of Singapore-based Terraform's TerraUSD, which shook the crypto world in the spring of 2022 and helped trigger the meltdown of cryptocurrency exchange FTX. The guilty plea averts a trial set for next year before US District judge Paul Engelmayer. He was charged in 2023 and was extradited to the US in January, after spending almost two years in Montenegro, where he'd been arrested and convicted of using a phony passport while a fugitive from charges in his native South Korea. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up US prosecutors said that the longest sentence they will seek under the plea deal is 12 years. The maximum US sentences are five years for the conspiracy count and 20 years for the wire fraud charge. Sentencing is scheduled for Dec 11. He had faced nine charges under the indictment. After he serves half of his sentence, the US will support Kwon spending the remainder of his prison term in South Korea, if he abides by the terms of his plea deal and qualifies under the transfer programme. Kwon had been a fugitive from South Korean charges for months when he and Terraform's former chief financial officer were caught with fake passports in March 2023, trying to board a Dubai-bound private jet at the airport in Montenegro's capital, Podgorica. SEC case Terraform and Kwon, who owned 92 per cent of the company, were found liable for civil fraud in a 2024 suit by the US Securities and Exchange Commission (SEC). A jury in New York, at the end of a two-week trial, determined that Kwon and Terraform misled investors, a dismal sign for the former crypto mogul's chances of beating criminal charges. The jury found that Terraform and Kwon falsely claimed that Chai, a popular Korean payment application, was using Terraform's blockchain technology to make transactions. The jurors also found investors were misled about the stability of the stablecoin, which Kwon and Terraform claimed was algorithmically pegged to the US dollar. Terraform and Kwon later agreed to pay US$4.47 billion and to wind down the firm, in a deal to resolve the case. BLOOMBERG
Business Times
44 minutes ago
- Business Times
US: S&P 500, Nasdaq end at records after benign inflation data
[NEW YORK] Wall Street stocks surged to fresh records on Tuesday after US data showed stable inflation despite worries over President Donald Trump's tariffs, lifting expectations for Federal Reserve interest rate cuts. Major indices spent the entire session in positive territory, with both the S&P 500 and Nasdaq finishing at fresh records. 'We're in a bull market,' said Adam Sarhan of 50 Park Investments. 'The bulls are strong and getting stronger.' The Dow Jones Industrial Average finished up 1.1 per cent at 44,458.61. The broad-based S&P 500 also gained 1.1 per cent to 6,445.76, while the tech-rich Nasdaq Composite Index jumped 1.4 per cent to 21,681.90. The consumer price index rose 2.7 per cent from a year ago in July, the same rate as in June. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up While 'core' inflation stripping out volatile food and energy segments accelerated from the month before, analysts described the report as largely in line with expectations. Analysts said the report confirmed expectations for a Fed interest rate cut, after the latest jobs data pointed to weakening in the labour market. 'Nothing potentially blocks the Fed from likely cutting interest rates in September though we still have one more inflation reading before that and one more jobs report,' said Angelo Kourkafas, senior global investment strategist from Edward Jones. Kourkafas said it was still likely 'premature' to conclude that there would be no major inflation impact from the tariffs. Large tech companies were generally higher with semiconductor company Micron Technology and Facebook parent Meta Platforms especially strong. Both piled on more than three per cent. Boeing jumped 2.9 per cent despite reporting lower commercial plane deliveries in July compared with June. However, the figures were still above those in the year-ago period. Intel rose 5.5 per cent after CEO Lip-Bu Tan met with Trump, who praised the executive after previously calling for him to step down. AFP
Straits Times
2 hours ago
- Straits Times
S&P 500, Nasdaq end at records after benign inflation data
Sign up now: Get ST's newsletters delivered to your inbox Traders working on the floor of the New York Stock Exchange on Aug 12, in New York City. NEW YORK - Wall Street stocks surged to fresh records on Aug 12 after US data showed stable inflation despite worries over President Donald Trump's tariffs, lifting expectations for Federal Reserve interest rate cuts. Major indices spent the entire session in positive territory, with both the S&P 500 and Nasdaq finishing at fresh records. 'We're in a bull market,' said Mr Adam Sarhan, of 50 Park Investments. 'The bulls are strong and getting stronger.' The Dow Jones Industrial Average finished up 1.1 per cent at 44,458.61. The broad-based S&P 500 also gained 1.1 per cent to 6,445.76, while the tech-rich Nasdaq Composite Index jumped 1.4 per cent to 21,681.90. The consumer price index rose 2.7 per cent from a year ago in July, the same rate as in June. While 'core' inflation stripping out volatile food and energy segments accelerated from the month before, analysts described the report as largely in line with expectations. Top stories Swipe. Select. Stay informed. Singapore Luxury items seized in $3b money laundering case handed over to Deloitte for liquidation Singapore MyRepublic customers air concerns over broadband speed after sale to StarHub Singapore Power switchboard failure led to disruption in NEL, Sengkang-Punggol LRT services: SBS Transit Singapore NEL and Sengkang-Punggol LRT resume service after hours-long power fault Business Ninja Van cuts 12% of Singapore workforce after 2 rounds of layoffs in 2024 Singapore Hyflux investigator 'took advantage' of Olivia Lum's inability to recall events: Davinder Singh Singapore Man who stabbed son-in-law to death in Boon Tat Street in 2017 dies of heart attack, says daughter Singapore Man who stalked woman blasted by judge on appeal for asking scandalous questions in court Analysts said the report confirmed expectations for a Fed interest rate cut, after the latest jobs data pointed to weakening in the labour market. 'Nothing potentially blocks the Fed from likely cutting interest rates in September though we still have one more inflation reading before that and one more jobs report,' said Mr Angelo Kourkafas, senior global investment strategist from Edward Jones. Mr Kourkafas said it was still likely 'premature' to conclude that there would be no major inflation impact from the tariffs. Large tech companies were generally higher with semiconductor company Micron Technology and Facebook parent Meta Platforms especially strong. Both piled on more than 3 per cent. Boeing jumped 2.9 per cent despite reporting lower commercial plane deliveries in July compared with June. However, the figures were still above those in the year-ago period.
