The stock price of BTS Group Holdings Public Company Limited (SET: BTS) experienced a surge of almost 5% to THB4.38 per share at the commencement of trading on Tuesday, following a decision by the Supreme Administrative Court that favored BTS in a legal battle against the Bangkok Metropolitan Administration (BMA).
As per the court ruling, BMA is obligated to compensate 2,348 million baht for the Operation & Maintenance (O&M) of the 1st phase extension to BTS, along with 2,199 million baht in interest. Furthermore, the BMA is also instructed to pay 9,406 million baht for the 2nd phase extension, accompanied by 8,786 million baht in interest within 180 days subsequent to the court’s verdict.
BTS anticipates receiving 22 billion baht from this judgment, which is projected to be allocated towards refinancing its maturing debentures. Nonetheless, the company expressed its willingness to engage in discussions regarding the extension of the BTS Green Line concession as part of the settlement.
Based on data compiled by LSEG, three analysts have recommended a “Buy” rating, while four analysts have advised a “Hold” recommendation, with a consensus target price set at THB6.49 per share.
