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Monday last chance to buy in AGT at 'cum div' price.
Goldfinger ( Date: 30-Nov-2019 14:17) Posted:
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Think the cash back from FLT to FCOT should be good enough to convince FCOT unitholders to accept merger.
chengwh1 ( Date: 30-Nov-2019 14:16) Posted:
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Waiting for Accordia, FCOT and FLIT to show hand - so exciting now. I already benefitted from Ascendas, Ascott, OUEHT M& A this year. Good year for dividend investors holding REITS.
Sure bro,... assuming we use another model to workout this merging : say,.. FLIT acquiring FCOT.
How would you work out the maths for this, in terms of the expected Theoretical Ex-Merging Price (TEMP), or sometimes called the Issue Price, and the NAV for both FLIT and FCOT... ?
How would you work out the maths for this, in terms of the expected Theoretical Ex-Merging Price (TEMP), or sometimes called the Issue Price, and the NAV for both FLIT and FCOT... ?
laksaman57 ( Date: 30-Nov-2019 00:27) Posted:
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Yeah,... I think Laksaman is right here. It will be difficult to to assign a number to future values in an acquisition. But an audited NAV cannot be debated upon. Assigning future values to execute an acquisition will open the floodgate to too many deliberations from unitholders on both sides of the camp - acquirer and acquiree. Probably stick to nav first,.. and last close prices for both REITs.
laksaman57 ( Date: 30-Nov-2019 00:08) Posted:
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More acceptable to FCOT unitholders to agree to recieve cash back and % of FLT share
FLT unitholder will benefit by buying FCOT at price close to its NAV.
Win Win for both. Merger of Equal.
FLT unitholder will benefit by buying FCOT at price close to its NAV.
Win Win for both. Merger of Equal.
Possibly a merger of equals with some sweetener of cash back for the acquiree.
Not likely FCOT investor will buy into your rationale and agree to pay such a high premium
to buy FLT at their current price.
to buy FLT at their current price.
Goldfinger ( Date: 29-Nov-2019 22:37) Posted:
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Remember FlLIT assets and properties are mostly freehold. You are valuing a perpetual asset which have potential to be rezoned as housing or commercial etc.
NAV is assessing only current values.
NAV is assessing only current values.
laksaman57 ( Date: 29-Nov-2019 19:59) Posted:
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Ok bro,... why do you say this pls ?
laksaman57 ( Date: 29-Nov-2019 19:59) Posted:
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FLT share piece already 30% above nav. Difficult for FCOT to buy FLT.
chengwh1 ( Date: 29-Nov-2019 19:33) Posted:
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I was working on the basis of the REIT with the bigger nav buying over the REIT with the smaller nav,... perhaps we can also use the basis of the REIT with the bigger mkt cap buying over the REIT with the smaller mkt cap. Then with this basis, FLT can buyover FCOT.
Actually, having business parks or not is merely operationally and strategic. Who buying who does not matter,... after the acquisition, the new mgmt can make the arrangements internally,...
Jmho, bro,...
Actually, having business parks or not is merely operationally and strategic. Who buying who does not matter,... after the acquisition, the new mgmt can make the arrangements internally,...
Jmho, bro,...
laksaman57 ( Date: 29-Nov-2019 17:58) Posted:
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ESR bought Viva bcos it's portfolio lack business parks. Now its price/nav just about right.
My guess FLT will buy FCOT
My guess FLT will buy FCOT
laksaman57 ( Date: 29-Nov-2019 14:02) Posted:
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Bros, let me try to put forward here,... in the simplest way possible, a scenario of merging.
As of end-FY19, ending on September 30th., 2019, based on audited results, the following are the nav per unit :-
1) FLT = $0.95 per unit.
2) FCT = $1.61 per unit.
Therefore, the GER (Gross Exchange Ratio) = 0.95/1.61 = 0.5900.
The final closing price of FCT prior to ' Halt' yesterday morning at 8.02am was : $1.67.
As heavy consideration to holders of FCT, I will assume a TEMP (Theoretical Ex-Merging Price) of $1.70 as issue price for the conbined REIT on Listing Day in the future.
To work out the TEMNP (Theoretical Ex-Merging NAV Price) for FLT, we compute the following : 0.5900 x $1.70 = $1.003 ONLY, this is sad,... for I currently hold FLT at 99c.
With the above scheme-of-arrangement, and calling the combined or post-merging units as ' Frasers Logistics & Commercial Trust (FLCT)' :-
1) For FCT Holders, nothing needs to be done except for just converting over their units from FCT to FLCT at a ratio 1:1.
2) For FLT Holders, every unit of FLT will need to be converted to ONLY 0.59 unit of FLCT at a ratio of 1:0.59.
In other words, every one of my FLT unit will get 0.59 unit of FLCT, based on my assumed framework in the above.
The $1.003 TEMNP may be satisfied by just FLCT units, which will follow the conversion equation from 2) above, or this $1.003 may be satisfied by a combination of units of FLCT and cash reimbursement.
I personally hoped the managers of FCT and FLT have an alternative framework, because as a holder of FLT (AND NO FCT Units at all), I am losing heavily here in terms of dpu amount to be collected later and in terms of capital gain compared to the last close price of $1.24 for FLT !
As of end-FY19, ending on September 30th., 2019, based on audited results, the following are the nav per unit :-
1) FLT = $0.95 per unit.
2) FCT = $1.61 per unit.
Therefore, the GER (Gross Exchange Ratio) = 0.95/1.61 = 0.5900.
The final closing price of FCT prior to ' Halt' yesterday morning at 8.02am was : $1.67.
As heavy consideration to holders of FCT, I will assume a TEMP (Theoretical Ex-Merging Price) of $1.70 as issue price for the conbined REIT on Listing Day in the future.
To work out the TEMNP (Theoretical Ex-Merging NAV Price) for FLT, we compute the following : 0.5900 x $1.70 = $1.003 ONLY, this is sad,... for I currently hold FLT at 99c.
With the above scheme-of-arrangement, and calling the combined or post-merging units as ' Frasers Logistics & Commercial Trust (FLCT)' :-
1) For FCT Holders, nothing needs to be done except for just converting over their units from FCT to FLCT at a ratio 1:1.
2) For FLT Holders, every unit of FLT will need to be converted to ONLY 0.59 unit of FLCT at a ratio of 1:0.59.
In other words, every one of my FLT unit will get 0.59 unit of FLCT, based on my assumed framework in the above.
The $1.003 TEMNP may be satisfied by just FLCT units, which will follow the conversion equation from 2) above, or this $1.003 may be satisfied by a combination of units of FLCT and cash reimbursement.
I personally hoped the managers of FCT and FLT have an alternative framework, because as a holder of FLT (AND NO FCT Units at all), I am losing heavily here in terms of dpu amount to be collected later and in terms of capital gain compared to the last close price of $1.24 for FLT !
Quick take on this
i) Frasers Commercial (positive) - they have been having troubles growing as their yield (6.2%) is high enough to preclude them from acquiring office assets so becoming a bigger entity with Frasers Logistics will help them enter the EPRA/NAREIT index and lower their yield.
ii) Frasers Logistics (negative) - they have a large pipeline of assets from the parent to grow, don' t really need to dilute their story by adding in office properties. they are already in the index and becoming a bigger entity doesn' t bring any additional benefits from this end
iii) Overall (puzzling) - office and logistics assets don' t really have much synergies, there could be some savings in terms of cost of debt and some shared management services but i think its too marginal to warrant a full on merger.
i) Frasers Commercial (positive) - they have been having troubles growing as their yield (6.2%) is high enough to preclude them from acquiring office assets so becoming a bigger entity with Frasers Logistics will help them enter the EPRA/NAREIT index and lower their yield.
ii) Frasers Logistics (negative) - they have a large pipeline of assets from the parent to grow, don' t really need to dilute their story by adding in office properties. they are already in the index and becoming a bigger entity doesn' t bring any additional benefits from this end
iii) Overall (puzzling) - office and logistics assets don' t really have much synergies, there could be some savings in terms of cost of debt and some shared management services but i think its too marginal to warrant a full on merger.
still no announcement yet, will it drag to next week?
....then who should buy who ?
laksaman57 ( Date: 29-Nov-2019 13:42) Posted:
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Number of properties being managed by each reit' s workforce
7 properties - Fraser Commercial Trust
60 properties - Fraser L& I Trust
7 properties - Fraser Commercial Trust
60 properties - Fraser L& I Trust
laksaman57 ( Date: 29-Nov-2019 13:18) Posted:
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Would it be a merger of equals or one buying the other? If the latter - I should have some cashback sweetener.
Last traded price vs NAV
$1.25 vs $0.95 - Fraser L& I Trust
$1.67 vs $1.61 - Fraser Commercial Trust
$1.25 vs $0.95 - Fraser L& I Trust
$1.67 vs $1.61 - Fraser Commercial Trust