KUALA LUMPUR: PublicInvest Research is positive on news that SP Setia Bhd
has entered a heads of agreement with Permodalan Nasional Bhd and the Employees Provident Fund Board to explore a potential sale of about GBP1.6bil of the commercial assets in Phase 2 of Battersea Power Station.
The assets, which are currently still under development, would be sold, upon completion, to a joint venture company between PNB and EPF.
"This is positive in our view, for the Group to monetize the commercial assets more efficiently and redeploy the capital into the subsequent phases in Battersea
Power Station," said PublicInvest Research.
"Details are still light at this juncture but if the proposal materializes, we believe the Group’s earnings could be lifted by at least RM400m, by just assuming 15% PBT margin."
The research firm maintained Outperform on SP Setia with an unchanged target price of RM4.50, with is about 25% discount to revalued net asset value.
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