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Dexus' Share Price Expected to Come under Material Pressure after New South Wales Court Ruling, Jefferies Says

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Dexus's (ASX:DXS) share price is expected to come under material pressure after it may be forced to sell its entire 27.3% stake in Australia Pacific Airports, which owns Melbourne's Tullamarine airport and the Launceston airport in Tasmania, at "fair market value" after a court ruling, Jefferies said in a note on Friday.

Dexus was found to have "committed a material irremediable Breach" against the shareholders' agreement by the New South Wales Supreme Court.

Jefferies estimated Dexus' 27.3% stake in Australia Pacific Airports represents around 10% of external assets under management and accounts for around AU$15 million of annual fee revenues.

The investment firm assigned a hold rating and a price target of AU$6.07 per share to Dexus.

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