23 September 2011
Malaysia Airports Holdings Bhd (MAHB) has signed a concession agreement with WCT Bhd and Segi Astana Sdn Bhd (SASB) for privatisation of the construction, development and financing of the integrated complex at klia2 under a 25-year concession.
The construction cost is RM530.3mil which will be funded through a combination of external borrowings by SASB and the balance shall be funded by shareholders equity.
SASB is wholly-owned by WCT Land Sdn Bhd, which in turn is a wholly-owned unit of WCT.
Following the concession agreement, MAHB said it would acquire 30% stake in SASB which would have an issued and paid-up capital of RM106.06mil upon the commencement of the commercial operation of the integrated complex, while WCT Land will maintain a 70% interest.
“In consideration of MAHB granting the concession to WCT, SASB will pay MAHB a lease rental.
“In addition, MAHB may be entitled to royalty payments,” said MAHB in a filing with Bursa Malaysia.
Bernama said Friday that OSK Research has maintained its "BUY" call on Malaysia Airports Holdings Berhad (MAHB) with its fair value of shares unchanged at RM7.36.
MAHB announced yesterday that it had entered into a concession agreement with WCT Bhd and Segi Astana SB (SASB) for privatisation of the construction, development and financing of the integrated complex at klia2 in Sepang.
It was on a build-operate-transfer model for a 20-year concession period, with an option to extend for another 10 years, it said in a research note.
Under the agreement, SASB will undertake construction of the integrated complex which will comprise a transportation hub, a commercial complex consisting of a shopping mall with a net lettable area of about 350,000 sq ft; and car parks with 6,000 parking bays.
OSK Research said the announcement did not come as a surprise as WCT had said last year that they have secured the concession agreement from MAHB for the complex.
The concession will provide MAHB three-way income recurring income from retail royalty, equity account from SASB’s earnings given its 30 per cent equity ownership in SASB and dividend cashflow. – BERNAMA
Source: The Star, 23 September 2011.
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