Thailand's TCC seeks loan for Frasers Hospitality Trust privatisation: Sources

The conglomerate is in talks with banks about a potential transaction to finance the deal. PHOTO: FRASERS PROPERTY LIMITED

SINGAPORE (BLOOMBERG) - 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 and its parent, Frasers Property, is in talks with banks about a potential transaction to finance the deal, said the people, who asked not to be identified as the process is private.

An announcement about the proposed buyout could be made as early as this 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, the people said. 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 were halted on Thursday (June 9) 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.

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