Seet further points out the potential divestment of other SingPost assets, which could lead to more special dividends in the medium long term.
Maybank Securities analyst Hussaini Saifee has maintained his “buy” call on Singapore Telecommunications (SGX:Z74
) (Singtel) while keeping his target price of $3.65. This follows Singapore Post (SGX:S08) ’s (SingPost) announced divestment of its Australia business,which could provide Singtel with special dividends — adding to its capital return arsenal.
SingPost is Singtel’s 22% owned associate, Hussaini notes. Analyst Jarick Seet, which covers the stock, expects a special dividend of $360 million on this transaction, translating to $79 million as Singtel’s portion of special dividends.
