Merger between Frasers' logistics, commercial Reits takes effect

THE S$1.58 billion merger between Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) first proposed last December by way of a trust scheme of arrangement, is now effective.

This comes after a court hearing for the deal, as well as approval by unitholders of FLT and FCOT.

FLT's manager has notified the Monetary Authority of Singapore of the grant of the court order sanctioning the trust scheme. Accordingly, the scheme has become effective and binding, the managers of both trusts announced on Wednesday.

FCOT unitholders will receive S$1.68 per unit held by April 24, 2020. This consideration will be paid via a combination of 15.1 cents in cash and 1.233 new FLT units per FCOT unit.

FCOT is expected to delist on April 29.

In addition, FLT's manager noted that the trust's new investment mandate will come into effect on Wednesday.

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"The investment mandate is to invest in a portfolio of income-producing real estate used predominantly for logistics or industrial purposes and located globally, and/or commercial purposes or business park purposes and located in the Asia-Pacific region, or in Europe (including the UK)," FLT's manager said.

As at 12.18pm on Wednesday, units in FLT were trading at S$1, up S$0.01 or 1 per cent, while units in FCOT last traded on April 9, following a request for suspension.