Frasers Property—controlled by Thai billionaire Charoen Sirivadhanabhakdi—is seeking to take Frasers Hospitality Trust private for a second time in almost three years in a deal valuing the Singapore-listed real estate investment trust at S$1.37 billion ($1 billion).
Under the deal, which is subject to regulatory approvals, Frasers Property is offering to buy the rest of the REIT that it doesn’t own at S$0.71 per share, according to a regulatory filing on Wednesday.
“The decision to propose this scheme was not taken lightly,” Eric Gan, CEO of Frasers Hospitality’s manager, said in a statement. “It reflects our commitment to act in the interests of our stapled securityholders amid structural challenges and an increasingly complex global environment.”
Frasers Property first attempted to take Frasers Hospitality private in June 2022 when it offered S$0.70 apiece but it failed to get enough votes from minority shareholders. About 74.9% of shareholders accepted the previous offer, falling short of the 75% threshold required by regulators.
Since then the macroeconomic situation has worsened amid higher interest rates and foreign exchange volatility, That’s made it more challenging for Frasers Hospitality to boost dividends and the REIT’s net asset value, the company said.
Frasers Property owns about 24.2% of the REIT, while Charoen’s TCC Group holds 36.7% and minority shareholders own the rest, according to Frasers Hospitality’s latest annual report.
Listed on the Singapore Exchange since July 2014, Frasers Hospitality owns 14 properties with a total of more than 3,400 rooms across eight hotels and six serviced residences in nine major cities in Asia, Australia, and Europe. The S$2 billion property portfolio includes InterContinental Singapore, Novotel Sydney Darling Square, and The Westin Kuala Lumpur.
With an estimated net worth of $11.2 billion based on Forbes’ real-time data, Charoen is among the wealthiest in Thailand. In addition to his controlling stake in Frasers Property, he also has interests in Thai Beverages (maker of Chang Beer), property developer Asset World, and the Big C Supercenter retail chain.
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