- We believe that the recent S&P move to place SingPost (SGX:S08) on Credit Watch negative following the sale of its Australia business is irrelevant, as we believe that further non-core assets will be monetised and debt likely pared down in the near term following further asset sales.
- - Read this at SGinvestors.io -
Net cash position of S$0.2bn after sale
- With an agreed price of AUD1.02bn, SingPost will realise a gain on disposal of S$312.1m. The transaction will be a full cash deal and SingPost will likely receive proceeds of S$360m after paring down its Australian debt once the deal is completed. The total debt will likely be reduced from S$895m to S$350m.
- - Read this at SGinvestors.io -
- With its existing cash position, SingPost’s cash position will be bumped to S$1.3bn, more than the existing S$1.1bn debt it carries.
Dividends over 2 years likely to exceed share price
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank.com/ 2024-12-06
Previous report by Maybank:
2024-12-03 Singapore Post - Australia Business Sold.
Price targets by 3 other brokers at SingPost Target Prices.
Listing of research reports at SingPost Analyst Reports.
Relevant links:
SingPost Share Price History,
SingPost Announcements,
SingPost Dividends & Corporate Actions,
SingPost News Articles
