KUALA LUMPUR: Public Investment Bank (PublicInvest) said the concession extension and the change in WCT Holdings Bhd's interest in Segi Astana SB's (SASB) will result in a revaluation gain of approximately RM184 million, or 13 sen per share.
"Despite viewing the development positively, we are not altering the core earnings forecast for WCT since it has no impact on cash flow," the investment bank said.
Yesterday, it was announced that WCT and Malaysia Airports Holdings Bhd (MAHB) have signed an agreement to extend the concession period for their joint venture company, SASB, by an additional 22 years, extending it until 2069 to operate gateway@klia2.
"As part of the concession extension, SASB will issue 34.02 million shares, representing 32.08 per cent of its enlarged share base, to MAHB.
"As a result, WCT's equity interest will decrease from 70 per cent to 53 per cent. There will be no change to WCT's 86 million non-voting redeemable preference shares in SASB," it said.
PublicInvest maintains its 'Underperform' rating on WCT, with a revised target price of 44 sen, up from 42 sen.