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FLT builds an offer for FCOT
Posted on Monday, 02 December 2019 11:38
Frasers Logistics & Industrial Trust (FLT) is proposing to take Frasers Commercial Trust (FCOT) private for SGD 1.57 billion (USD 1.15 billion).
The acquisition would be the third-largest deal by value on record to target a Singaporean real estate investment trust (REIT), according to Zephyr, the M&A database published by Bureau van Dijk.
It would create a domestic logistics, industrial, office, business park and commercial giant with assets across Asia Pacific, Europe and the UK worth SGD 5.70 billion.
The enlarged entity is already being touted as one of the top ten largest of its kind in Singapore by market capitalisation of SGD 4.20 billion and a bigger free float of SGD 3.00 billion.
It is expected to have a greater index representation on the FTSE EPRA/NAREIT Index, which may lead to higher trading liquidity and could attract a wider investor base.
However, FLT must first table an offer of SGD 1.68 apiece, which comprises 15.10 Singaporean cents in cash and 1.23 newly issued securities for every 1,000 FCOT currently held.
The scheme represents a premium of 8.2 per cent to the 12-month volume weighted average price up to and including 27th November and 3.1 per cent to the net asset value per unit.
FCOT was listed on the local bourse in 2006 and was established to invest in a diversified portfolio of commercial real estate assets located in the Asia-Pacific region and Europe.
The REIT currently has six office buildings and business parks with a combined appraised value of SGD 2.20 billion, as at 30th September 2019, located in Singapore, Australia and the UK.
Along with the proposed public takeover, FLT is in the process of acquiring a 50.0 per cent interest in Farnborough Business Park from a wholly-owned subsidiary of Frasers Property for SGD 157.70 million.
FCOT currently owns the remaining 50.0 per cent stake in the asset comprising 14 commercial buildings.
© Zephus Ltd