Frasers Hospitality Trust (FHT) has obtained court approval for its proposed privatisation through a trust scheme arrangement, clearing the path for its anticipated delisting on or around Oct 6 at 9 am.

The trust's managers announced Thursday evening that trading of FHT stapled securities will be halted at 9 am on Friday (Sep 12).

The record date for determining securityholders' scheme entitlements has been established for 5 pm on Sep 22. The scheme is anticipated to take effect on Sep 23, with scheme consideration payments to qualifying securityholders scheduled for on or around Sep 30.

Real estate major Frasers Property announced in May its intention to acquire FHT at S$0.71 per stapled security, referencing the trust's challenges in enhancing distributions and expansion amid economic uncertainties.

The S$1.37 billion proposal offered an 11 per cent premium above the trust's net asset value – significantly exceeding the average 1.04 times premium for Singapore REIT privatisations since 2020.

The deal received overwhelming investor support. During the August scheme meeting, 99.2 per cent of participating securityholders – comprising 618 investors holding 321.2 million units – endorsed the privatisation. Only 100 securityholders representing 2.6 million units opposed the proposal.

Multiple parties chose not to participate in the voting process, including Frasers Property's wholly owned subsidiary initiating the offer, FHT's sponsor and affiliated parties, significant securityholders and the trust's management team.

This represents Frasers Property's second privatisation initiative within three years. The stapled group's earlier attempt in September 2022 at S$0.70 per security was narrowly unsuccessful.

FHT's stapled securities finished unchanged at S$0.71 on Thursday, prior to the announcement.