SINGAPORE conglomerate Fraser and Neave (F&N) has received an unsolicited cash offer of S$1.4 billion (US$1.1 billion) for Frasers Hospitality, its hospitality and serviced residence arm.
F&N said in a filing to the Singapore Stock Exchange (SGX) that the offer was submitted by a third party unrelated to any of its existing directors or shareholders.
According to Bloomberg, two sources with knowledge of the matter identified the bidder as Overseas Union Enterprise, a property affiliate of Indonesia-based Lippo Group, which owns Meritus Hotels & Resorts.
In the same SGX filing, F&N emphasised that it would not be responding to the offer since Frasers Hospitality formed an integral part of its property business and the company was constrained from selling material assets while it remains the subject of a US$7.2 billion takeover bid by Thai billionaire Charoen Sirivadhanabhakdi.
Frasers Hospitality’s portfolio consists of 43 serviced residences across Europe, Asia, Australia and the Middle East under its Fraser Suites, Fraser Place and Fraser Residence brands, three Modena boutique hotels in Shanghai, Tianjin and Suzhou, and the recently launched Capri by Fraser @ Changi City in Singapore (TTG Asia e-Daily, May 9, 2012).
