Fortis proposes to buy RHT Health Trust's entire asset portfolio – What this mean to the unitholders?

Q&ACategory: QuestionsFortis proposes to buy RHT Health Trust's entire asset portfolio – What this mean to the unitholders?
Peng Yeow Loh asked 3 years ago

Dear Mr PC Wong,
The latest new sounds as the subject above: 
http://www.businesstimes.com.sg/companies-markets/fortis-proposes-to-buy-rht-health-trusts-entire-asset-portfolio-for-s966m
What does this mean to a unitholder like me? Am I suppose to do anything?
Some of the statements from the news I hope Mr Wong PC can explain and thus advice what action should a unitholder like me suppose to take:
“The net proceeds are intended to be substantially distributed to unitholders, said the trustee-manager ” and “The trustee-manager has not declared a distribution for the six months ended Sept 30, as it has not received certain service fees and interest income on the CCDs from the relevant Fortis entities; Fortis is proposing for these to be paid alongside the purchase consideration”.
Please advice.
Thanks,
Loh

1 Answers
paul wong answered 3 years ago

Hi Loh,
I previously owned Croesus Retail Trust which was bought over by Blackrock. I chose to wait until the proceeds of the sales to get the full amount due. As it is croesus Retail Trust has now been suspended.
What happens is that the unitholder can hold on to the trust until it is suspended and the amount due to be paid to the unitholder is due course. This could take some time.
There are unit holders that will sell at a slightly lower price say just 0.2 – 0.5 cent difference, and exit from the trust completely so that they can cash out sooner rather than to wait for the proceeds of the sale to be paid.   
However in RHT case they have not distributed any dividend for the year ended September 30. That dividend will be paid together withe the proceeds from the sales.
Therefore it is more prudent to wait for the sales completes so that you get both the proceeds and the dividend due.
Hope this helps.
 
 
 
 
 

Peng Yeow Loh replied 3 years ago

Thanks !