Frasers Hospitality Trust Approves Major Privatisation Move: What Retail Investors Need to Know About the 2025 Trust Scheme

Key Highlights from the Privatisation Announcement

• Privatisation Approved: Frasers Hospitality Trust (FHT) will be privatised through a Trust Scheme of Arrangement, following a successful vote at the Scheme Meeting on 15 August 2025.
• Majority Support Secured: The privatisation resolution passed with a strong majority of stapled securityholders, meeting the required threshold of at least 75% in value and a majority in number of those present and voting.
• Abstentions by Key Parties: Significant shareholders, including the Offeror, related parties, and managers, were required to abstain from voting due to potential conflicts of interest.
• Price-Sensitive Event: The privatisation, once effective, will result in FHT being delisted from the Singapore Exchange, which can have a substantial impact on share values and liquidity.
• Extensive Disclosure of Interested Parties: Detailed disclosure of all parties required to abstain from voting, including family members and companies linked to the Sirivadhanabhakdi family, who collectively control a substantial percentage of stapled securities.

What Retail Investors Must Know

The approval of the Trust Scheme for the privatisation of Frasers Hospitality Trust marks a major turning point for investors. The move follows the dispatch of a scheme document and a formal vote at the Scheme Meeting, which took place at the InterContinental Singapore on 15 August 2025. This event is highly price-sensitive and could have immediate consequences for FHT’s share price and future liquidity.

1. Scheme Meeting Results

The resolution for the privatisation was passed by a majority in both number and value of stapled securityholders who were present and voted. This is a crucial requirement under Singapore’s regulatory framework for such corporate actions, ensuring that the privatisation is supported not just by large institutional holders but also by a broad base of investors.

2. Who Abstained from Voting—and Why It Matters

A significant list of parties were required to abstain from voting due to their direct or deemed interests in both the Offeror and FHT. This includes:

• The Offeror and its concert parties
• Managers and trustee-managers of FHT
• Major shareholders such as TCC, FPL, TCCA, and individuals linked to the Sirivadhanabhakdi family

These abstentions are designed to ensure the fairness of the vote and reduce conflicts of interest, but also highlight the concentration of ownership in FHT.

3. Impact on Shareholders and Share Price

The privatisation of FHT is a price-sensitive event that will result in the delisting of the stapled securities from the SGX. This means:

• Investors will no longer be able to trade FHT units on the open market after the scheme becomes effective.
• The scheme consideration (the amount offered per stapled security) will become the key metric for determining value going forward.
• Liquidity will be lost post-delisting, and investors who do not act may be left with unlisted securities.

Investors should pay close attention to the scheme consideration details in the scheme document sent in July 2025 and make timely decisions on whether to accept the offer.

4. Extensive List of Interested Parties

The documentation provides a detailed table of all parties required to abstain, including their direct and indirect interests. The Sirivadhanabhakdi family and associated entities collectively control a very large portion of FHT’s securities. Their abstention ensured procedural fairness but underscores the tight ownership structure in FHT.

5. Next Steps and What Investors Should Do

With the scheme approved, the next milestone will be the formal implementation of the privatisation and eventual delisting from the SGX. Investors must:

• Review the scheme consideration and terms.
• Take action before the effective date to avoid being left with illiquid securities.
• Monitor further announcements for the timeline of the delisting and scheme implementation.

Final Thoughts: Why This News Could Move the Market

This is a major corporate event for Frasers Hospitality Trust. The privatisation and delisting are likely to have a direct impact on share price in the short term, as the scheme consideration becomes the new benchmark for value and trading liquidity dries up. Retail investors should be aware that such events typically lead to price realignment to the scheme offer and may result in arbitrage opportunities in the days leading up to delisting.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review official documents and consult with a qualified financial advisor before making investment decisions related to the privatisation of Frasers Hospitality Trust.

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