SingPost – Lim and Tan

Makes Sense

• 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.

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