Fraser & Neave (F99.SG) +5.2% at new 52-week high of $5.86 on hopes diversified business group may issue special dividend following recent completion of US$257.8 million ($355 million) sale of glass packaging business in Malaysia, says Dow Jones.
Company will reap estimated gain of $149 million.
“Chances of a special dividend being declared this year has increased as management shall consider returning part of the cash surplus to shareholders if there are no attractive opportunities available,” says Deutsche Bank, which has Buy call with $6.30 target.
But analyst at another foreign house more conservative: “They are more likely to conserve the cash to redevelop Starhub Centre.” F&N last week announced $380 million purchase of office property from CapitaCommercial Trust (C61U.SG), plans to turn it into residential/retail asset. Orderbook quotes tip resistance at $5.90.
