Rights issue likely to boost free float, valuations for Frasers Hospitality Trust

SINGAPORE (Sept 14): Daiwa says the imminent rights issue of Frasers Hospitality Trust (FHT), albeit dilutive, could help to improve its free float and valuations.

This echoes the sentiments of the trust’s management during its briefing held for analysts on Sept 13.  

To recap, FHT is undertaking a rights issue to raise its proposed acquisition of Novotel Melbourne on Collins (NMOC), plus 72 car park lots, for a total consideration of A$237 million ($245.4 million). The rights issue amount is at a 23.7% discount to the trust’s closing price on Sept 9.

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