TCC said to be seeking loan to take Frasers Hospitality Trust private

Thai billionaire Charoen Sirivadhanabhakdi's TCC Group is seeking a $500 million loan to take Singapore-listed Frasers Hospitality Trust private, according to people with knowledge of the matter.

The conglomerate, which controls a majority of shares in both Frasers Hospitality Trust and its parent, Frasers Property, is in talks with banks about a potential transaction to finance the deal, said the sources, who asked not to be identified as the process is private.

An announcement about the proposed buyout could be made as early as next week, they added.

The real estate investment trust is working with a financial adviser as it explores the potential privatisation, amid concerns that its share price does not reflect the company's value, Bloomberg News reported in April.

Deliberations are ongoing and there is no certainty that the deal will proceed, said the sources.

A representative for Frasers Hospitality Trust declined to comment, while TCC Group did not immediately respond to requests for comment.

Trading of shares in Frasers Hospitality Trust and Frasers Property was halted on Thursday pending an announcement from the companies.

With a portfolio valued at $2.25 billion, Frasers Hospitality Trust oversees 15 properties across Asia, Australia and Europe, according to Frasers Property's 2021 annual report.

BLOOMBERG