Excerpts from UOB Kay Hian report
Analysts: Andrew Chow, CFA, & the Singapore Research Team
![]() Special dividend in store? In our view, several companies may consider paying special dividends in 2016. These include SIA and SIA Engineering (SIAEC). We expect SIAEC to distribute the bulk of the divestment gains from the disposal of HAESL. We estimate SIAEC’s dividend payout (final+special) of 21 S cents per share, assuming a 90% payout ratio. ![]() Lastly, we think CD may also give out a special dividend, possibly in 2H16/1H17 upon the sale of its buses back to the government as part of the government contracting model (GCM). We estimate a potential special dividend payout of 21.6-25.0 S cents/share, assuming: a) the government buys bus assets from SBS Transit (SBS T) at 0.9-1.0x P/B, b) SBS T pays down 50% of its outstanding debt, and c) the remaining net cash is fully paid out as a special dividend. Full report here. |