Frasers Centrepoint Trust EGM

I watched the webcast of Frasers Centrepoint Trust EGM this morning. The share trading of FCT has been halted this morning prior to the EGM.

The CEO of FCT, Richard Ng started the EGM with a presentation of the background, benefits of this acquisition and addressing shareholders' posted questions before preceeding with the resolutions.

Questions asked by shareholders are related to the timing of this acquisition, prospects of suburban malls in Singapore, Asset Enhancement Initiatives in future for existing malls, and how current valuations of malls are affected by Covid.

Costly tax payment due to the indirect ownership of malls held by ARF is the driven motivation behind this move. FCT's focus is still on Singapore suburban malls and there are no plans to acquire malls overseas nor any other acquisitions in the short future. 

The benefits of this acqusition can be summarised in this slide.

All the 4 resolutions have been passed in the EGM.

a. The proposed Asia Retail Fund transaction

b. The proposed equity fund raising

c. The proposed sponsor placement

d. The proposed whitewash resolution.

e. The proposed Bedok Point divestment.

This means shareholders of FCT should prepare some cash to be ready for the involvement of equity fund raising through preferential offering. I believe the details will be released by FCT soon. I am looking forward to it. 

Updated after FCT released details of important dates on 28 Sep around 3.30pm:

We must remember to apply for our entitled shares and excess shares of preferential offering before 19 Oct 2020, Monday 9.30pm by electronic means. 

As a bonus to reconcile the books before 7 Oct 2020 for the private placement to big boys, FCT also announced dividends of 2.804 cents from 1 Apr to 6 Oct and retained distribution of 1.681 cents from 1 Oct 19 to 31 Mar 20. 4.485 cents of CD payable on 4 Dec 2020. Huat ah! 

Thanks for reading!

With love and peace, 

Qiongster