F&N to list property arm Frasers Centrepoint on SGX this year

Here's how shareholders could benefit.

Fraser and Neave Limited today announced a proposal to list its property arm, Frasers Centrepoint Limited by undertaking a dividend in-specie distribution of FCL shares to F&N shareholders. FCL is expected to be listed by way of introduction on the Main Board of the Singapore Exchange Securities Trading Limited.

Upon obtaining the relevant approvals, F&N shareholders will receive, at no cost, two FCL shares for every one F&N share owned. F&N and FCL will be traded separately on the SGX-ST.

The listing of FCL shares is expected in November or December 2013. Following the completion of the proposed transaction, F&N will no longer have an interest in FCL.

The in-specie distribution and listing exercise is an effective way to release value to F&N shareholders. It provides sharper focus on the growth of the Food & Beverage and Properties businesses as independently-listed entities, and paves the way for further growth in both sectors.

This is consistent with the Company’s strategy of maximising value for shareholders. Following the in-specie distribution exercise, F&N and Thai Beverage Public Company Limited will be able to draw on each other's strengths in their regional distribution networks, product development capabilities and their portfolio of beverage brands.

This exercise will solidify F&N’s position as a leading consumer group in South-east Asia. Upon listing, FCL will be a separate standalone entity listed on the SGX-ST, with its own independent Board and Management.

FCL will enjoy greater corporate visibility and have direct access to capital markets to pursue its growth strategies, building on its established market leading position as an integrated real estate player.

Mr. Lim Ee Seng, Group Chief Executive Officer of FCL said, “This is another milestone in FCL’s corporate history. The listing will enhance FCL’s profile, and enable us to pursue our growth strategies independently.

Our priority is to continue creating value for shareholders through optimising capital productivity, seeking sustainable earnings growth and expanding the asset portfolio in a balanced manner to preserve stability of earnings.”

On FCL’s plans moving forward, Mr. Lim said, “In addition to Singapore, China and Australia are core markets for FCL and we will continue to focus on the residential and commercial property development sectors there.

We will also continue to grow fee-based management contracts under ourserviced residence brands, and undertake asset enhancement initiatives on our investment properties to improve asset yields and capital values. To further unlock value, we are also considering the establishment of a hospitality REIT.”

The proposed transaction, which is subject to approvals by F&N shareholders at an Extraordinary General Meeting, the SGX-ST and relevant approvals and consents, provides F&N shareholdersthe flexibility to decide on their investment holdings in two separately listed companies, without any additional cash outlay.