$539m Bharti rights issue will have minimal impact on Singtel's gearing: report
Chances of special dividends, however, will lessen.
According to a report by CGS-CIMB, Singtel’s current deal in securing the $539m Bharti rights deal will have minimal impact on its gearing.
Singtel’s cash outlay on application stands at $135m, or 14% of its direct stake. The remaining $404m, meanwhile, will be distributed over two more calls within a three-year period.
A cash pile of $755m and likely cash proceeds from the Optus Tower sale are seen as sources for the payment of these.
However, CGS-CIMB predicted with the allotment of funds to the rights issue, the chances for Singtel’s potential special dividends will be reduced.