This is different from what they had as their base case previously, where they had assumed $350 million in hybrid securities that would have been accounted for as equity.
CGS-CIMB analysts Tay Wee Kuang and Lim Siew Kee have maintained their “add” call on Sats, but with a lowered target price from $3.45 to $3.17 after the company announced more details of its funding structure for the planned acquisition of Worldwide Flight Services (WFS).
The analysts say their target price of $3.17 is based on the pre-rights issuance fair value with dilutive earnings per share (EPS) as a result of lower finance costs.
