This article first appeared in The Edge Financial Daily on April 3, 2018

KUALA LUMPUR: WCT Holdings Bhd is acquiring a 60% stake in Subang Skypark Sdn Bhd — operator of the Skypark Terminal (formerly Terminal 3) of the Sultan Abdul Aziz Shah Airport in Subang, Selangor — for RM44.56 million cash.

This confirmed a report by The Edge Malaysia weekly on Feb 19 quoting sources that tycoon Tan Sri Desmond Lim Siew Choon, the largest shareholder of WCT with a 19.57% stake, was looking to buy 60% of Subang Skypark from Tan Sri Ravindran Menon and his partner Datuk Aisamar Kadil Mydin Syed Marikiah.

WCT said the acquisition is to enable it to invest in Subang Skypark, which it believes has the potential for value enhancement, as well as the potential for development of the car park area into a mixed commercial development project.

“It also allows the WCT Group to diversify into the ground handling for private aviation business, as well as hangarage services which are complementary to the existing retail operations at Skypark Terminal,” it added.

In a filing with Bursa Malaysia yesterday, WCT said it was making the acquisition via its indirect wholly-owned subsidiary Skyline Domain Sdn Bhd.

It added that the purchase consideration took into consideration 60% of the unaudited net assets value of Subang Skypark Group as at June 30, 2017 and its future prospects.

“The acquisition will be funded via internal funds,” WCT said, adding that the acquisition is not expected to have any material effects on the group’s earnings per share, gearing and net assets per share for the financial year ending Dec 31, 2018.

The acquisition is not subject to the approval of WCT shareholders.

Subang Skypark and its two wholly-owned subsidiaries namely Skypark RAC Sdn Bhd and Skypark FBO Sdn Bhd currently hold the concession to operate the commercial retail area of Subang Skypark, a car parking area, a business aviation centre, and a hangar known as the Skypark Regional Aviation Centre.

Subang Skypark was awarded the 59-year concession by the government in 2009. Airlines such as Firefly, Malindo Airways and Berjaya Air currently fly out of Subang Skypark.

The Edge Malaysia report stated that Menon and Aisamar each hold 30% of Subang Skypark, while the remaining 40% is held by private company Anggun Intelek Sdn Bhd, a unit of Temasek Padu Sdn Bhd.

Subang Skypark had been profitable in the four financial years up till 2015, according to RAM Credit Rating.

The latest available data was for the financial year ended December 2015, which saw Subang Skypark registering a net profit of RM520,936 on revenue of RM21.08 million. It had total assets amounting to RM162.39 million and total liabilities of RM130.74 million.

WCT shares closed down nine sen or 6.87% at RM1.22 yesterday, bringing a market capitalisation of RM1.72 billion.