(Bloomberg) — Frasers Property Ltd. is proposing to take its listed hospitality arm private at a value of S$1.35 billion ($970 million) after the pandemic hammered the hotel and tourism business.
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The company — backed by Thai billionaire Charoen Sirivadhanabhakdi — is offering S$0.70 per share for Frasers Hospitality Trust, a Singapore-based real estate investment trust, according to a joint statement on Monday.
Shares of Frasers Hospitality jumped as much as 5.3% to S$0.695 in Singapore, having resumed trading after being halted last week pending the announcement. Frasers Property rose 0.9%.
The move to privatize comes after a strategic review that found the REIT still faces long-term challenges despite efforts to unlock value. The endemic nature of Covid-19 presents “significant risks” to the hospitality sector even as it recovers gradually, while looming recessionary pressures and geopolitical tensions add uncertainty, the statement said.