ALR’s MYR3.93b offer (based on enterprise value) for LITRAK’s two highway concessions, which translates into e.MYR3.15b in equity value, is fair; the latter at 8% above our equity DCF est. (ke: 8.3%). LITRAK’s share of the equity value (based on its 100% holding in LDP, 50% in SPRINT) is e.MYR2.7b or MYR5.06/shr, a bumper 26% upside from yesterday’s close and 4% above our MYR4.85 DCF-TP which we maintain for now.
KE: Lingkaran Trans Kota – BUY TP RM4.85
