Financial advisors greenlight FLT and FCOT merger

FLT’s advisors found the merger to be on normal commercial terms.

The independent financial advisors (IFA) of Frasers Commercial Trust (FCOT) and Frasers Logistics & Industrial Trust (FLT) have recommended the former's unitholders to vote in favour of the two REITs’ merger, according to SGX filings.

Based on a circular to unitholders by FLT, its advisor Deloitte & Touche Corporate Finance posited that the merger as well as the acquisition of the remaining 50% freehold interest in Farnborough Business Park (FBP) that is not already held by FCOT, are on “normal commercial terms and are not prejudicial to the interests of FLT and its minority unitholders.”

Meanwhile, FCOT’s advisor Evercore Asia (Singapore) has deemed the scheme consideration of $1.68 per FCOT unit to be “fair and reasonable” from a financial point of view, according to a scheme document.

Further, both directors and independent directors of the two trusts have recommended its unitholders to vote in favor of the trust scheme of arrangement.

In December 2019, the two REITS proposed to merge into an enlarged REIT for a total consideration of $1.54b, comprising $138.1m in cash and 1,128 million consideration units. This will be made through a trust scheme of arrangement, with FLT acquiring all units of FCOT in exchange for a combination of cash and new units in FLT.

Also Read: FLT and FCOT propose merger for $1.54b