SingPost – Lim and Tan
• The company made its first-ever share buy-back yesterday, buying 500,000 shares at $1.13.
• The mandate allows it to buy up to 192.775 mln shares, or 10% of existing issued capital.
• Note that Sing Post raised $200 mln via the issuance of the 3.5% 10-year notes in March this year.
• Based on 6.25 cents dividend for ye Mar ’10 (as for the preceding 3 fiscal years), the yield at $1.13 is 5.5%.
• Given there is no immediate need for the new funds raised in March, buying back its own shares does make eminent sense.
• The stock, for which we have maintained a BUY for some time, has done reasonably well with little fanfare.