Frasers Hospitality Trust undertakes rights issue to fund $245 mil acquisition of Novotel Melbourne on Collins

SINGAPORE (Sept 10): Frasers Hospitality Trust (FHT) is undertaking a rights issue to raise $266.3 million to fund the acquisition of hotel Novotel Melbourne on Collins plus 72 car park lots for a total consideration of A$237 million ($245.4 million).

FHT’s trustee and manager will issue 441.5 million new stapled securities at 60.3 cents per unit. Eligible FHT stapled securityholders can subscribe to 32 new stapled securities for every 100 units they hold. The issue price represents a discount of 23.7% to FHT’s closing price of 79 cents on Friday.

Novotel Melbourne on Collins is located along Collins Street, the financial centre and premier shopping street of Melbourne and home to various banks, insurance companies, boutiques and retailers.

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