Unitholders approve $1.58b merger of Frasers Reits

Frasers Logistics & Industrial Trust (FLT) unitholders have voted overwhelmingly to approve the proposed merger between FLT and Frasers Commercial Trust (FCOT).

The vote yesterday took place at an extraordinary general meeting where 99.85 per cent of FLT unitholders approved the merger, FLT said in a bourse filing.

Meanwhile, 99.78 per cent approved the issuance of new units to FCOT unitholders as part of the merger's terms.

The merger, first proposed in December last year, would be by way of a trust scheme of arrangement and would cost $1.58 billion.

FLT would acquire all units of FCOT for $1.54 billion and would pay for them via a combination of cash and issuance of new FLT units to FCOT unitholders.

FCOT and FLT had called for trading halts yesterday morning ahead of separate extraordinary general meetings scheduled later in the day to vote on the merger proposal.

FLT units closed up three cents or 2.5 per cent to $1.23, while units of FCOT closed up three cents or 1.9 per cent to $1.62 on Tuesday.

A version of this article appeared in the print edition of The Straits Times on March 12, 2020, with the headline 'Unitholders approve $1.58b merger of Frasers Reits'. Print Edition | Subscribe