Unitholders greenlight FLT and FCOT merger

They also approved the payment of all fees and expenses relating to the proposed merger.

Shareholders of Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) gave a go-ahead to the proposed merger between the two trusts, an SGX filing revealed.

Unitholders also approved the payment of all fees and expenses relating to the proposed merger, as well as the authorisation of the FLT Manager and FLT Trustee to complete and do all such acts.

This follows after both trusts’ financial advisers also gave its approval to the merger. 

The deal comprises $138.1m in cash and 1.13 billion consideration units. The merger 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. FCOT unitholders will receive $1.68 for each unit as at the books’ closure date, each fulfilled with $0.151 in cash and 1.233 new units in FLT at an issue price of $1.24 per unit. 

Frasers Property Limited (FPL) and its related corporations are expected to hold around 21.9% of the total issued units in the REIT. The group currently holds about 19.6% in FLT and 25.9% in FCOT.