F&N the latest group to spin off property assets

The Singapore-based group, bought this year by Thai billionaire Charoen Sirivadhanabhakdi after a protracted takeover battle, said it planned to list Frasers Centrepoint in the city-state by the end of the year.

Fraser and Neave (F&N), the Singapore-based property-to-drinks conglomerate, has become the latest company to attempt a spin-off of a property arm.
The group, bought this year by Thai billionaire Charoen Sirivadhanabhakdi after a protracted takeover battle, said it planned to list Frasers Centrepoint (FC) in the city-state by the end of the year.

F&N shareholders will receive two FC shares for every F&N share owned, leaving the property division as a separately listed entity.
The move, subject to shareholder and regulatory approval, is part of efforts by TCC, the Thai conglomerate controlled by Charoen, to focus on F&N’s food and beverage business. TCC owns 61.59 per cent of F&N.

F&N also said it is considering a Reit of its hospitality assets.
“The listing will enable us to pursue our growth strategies independently. In addition to Singapore, China and Australia are core markets for [FC] and we will continue to focus on the residential and commercial property development sectors there,” said Lim Ee Seng, chief executive of FC.

The move follows a recent trend of companies listing their property interests to unlock value in the assets.
Fantasia, a Chinese property developer, said it would spin off certain assets in a separate listing, while Great Eagle Holdings listed three Hong Kong hotels through a business trust-type vehicle at the end of May.

Also, Hong Kong property developer and infrastructure company Hopewell Holdings tried to spin off its Hong Kong property business via an IPO in early June. Hopewell was, however, forced to call the deal off due to a lack of demand.

Source: FinanceAsia