KUALA LUMPUR: RHB Research said Telekom Malaysia has the capacity to return cash above its minimum dividend policy of RM700 million per annum.
It said on Tuesday, Sept 7 that it maintained its market perform and fair value of RM3.55 following the latest corporate development by TM over its stake sale in MEASAT GLOBAL BHD [].
On Monday, TM said it had decided to dispose of its 15.39% stake in Measat Global Bhd for RM252 million or RM4.20 per share. It is the second largest shareholder in Measat.
The stake, comprising of 60.02 million shares, would be disposed at RM4.20, a premium of 40 sen or 10.53% to the last traded market price on July 27, 2010.
RHB Research said while no firm commitment has been made, 'we continue to hold the view that TM has the capacity to return cash above its minimum dividend policy of RM700 million per annum'.
It said this was based on TM's healthy cash pile of RM3.6 billion (at end-June 2010); 2) comfortable gross debt/EBITDA of 2.3x; 3) its 200 million Axiata shares, which would raise another RM900 million; and 4) proceeds from Measat's privatisation.
It said on Tuesday, Sept 7 that it maintained its market perform and fair value of RM3.55 following the latest corporate development by TM over its stake sale in MEASAT GLOBAL BHD [].
On Monday, TM said it had decided to dispose of its 15.39% stake in Measat Global Bhd for RM252 million or RM4.20 per share. It is the second largest shareholder in Measat.
The stake, comprising of 60.02 million shares, would be disposed at RM4.20, a premium of 40 sen or 10.53% to the last traded market price on July 27, 2010.
RHB Research said while no firm commitment has been made, 'we continue to hold the view that TM has the capacity to return cash above its minimum dividend policy of RM700 million per annum'.
It said this was based on TM's healthy cash pile of RM3.6 billion (at end-June 2010); 2) comfortable gross debt/EBITDA of 2.3x; 3) its 200 million Axiata shares, which would raise another RM900 million; and 4) proceeds from Measat's privatisation.
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