Unit holders approve $1.58b Fraser Reits merger

Frasers Logistics and Industrial Trust CEO Robert Wallace (left) and Frasers Commercial Trust CEO Jack Lam. The merger would be by way of a trust scheme of arrangement and would cost S$1.58 billion. ST PHOTO: NG SOR LUAN

SINGAPORE (THE BUSINESS TIMES) - Frasers Logistics & Industrial Trust (FLT) unit holders have voted overwhelmingly to approve the proposed merger between FLT and Frasers Commercial Trust (FCOT), FLT said in a bourse filing during the midday trading break on Wednesday (March 11).

The vote on Wednesday took place at an extraordinary general meeting where 99.85 per cent of FLT unit holders approved the merger while 99.78 per cent approved the issuance of new units to FCOT unit holders as part of the merger's terms.

The merger, first proposed in December 2019, 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 unit holders.

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

FLT units closed up $0.03 or 2.5 per cent to $1.23, while units of FCOT closed up $0.03 or 1.9 per cent to $1.62 on Tuesday.

Follow ST on LinkedIn and stay updated on the latest career news, insights and more.