Kapsch Falls as South Africa Project Delayed Again: Vienna Mover
Kapsch TrafficCom AG (KTCG), the Austrian maker of toll-road systems, headed for the lowest since April after it said a South African project that was expected to start this month has been delayed.
The shares fell as much as 4.1 percent and traded 3.6 percent lower at 2:04 p.m. in Vienna, making it the worst performer in the 37-member ATX Prime Index. (ATXPRIME) A close at that level would be the stock’s lowest price since April 23. About 9,700 shares traded, or 84 percent of the three-month daily average.
The South African electronic toll project, which the company said will boost revenue by more than 50 million euros ($65.6 million) a year, is “the most important trigger for Kapsch’s share price,” Daniel Lion, a Vienna-based analyst at Erste Group Bank AG (EBS), said by phone today. Had it started operating “it would’ve been nice”.
The system, in South Africa’s Gauteng province that includes Johannesburg and the capital, Pretoria, has been repeatedly delayed after opposition from drivers, labor unions and car rental agencies. It is unclear when the project will start because discussions about a legal framework are taking longer than expected, Kapsch said on July 17.
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