Temasek Holdings is set to gain Bt20.12 billion from Advanced Info Service via Temasek subsidiaries following AIS's plan to pay a full-year dividend of Bt6.30 per share plus a special dividend of Bt5 for 2009 operations.
As of last August, Cedar Holdings and Aspen Holdings of the Singapore state investment arm owned 54.43 per cent and 41.86 per cent respectively of Shin Corp. Shin owns around 42.65 per cent in AIS, while Singapore Telecom owns 19.17 per cent. As of March 2008, Temasek owned more than 50 per cent of SingTel.
Temasek is estimated to gain Bt13.7 billion in dividends via Cedar and Aspen and Bt6.42 billion from SingTel.
The group led by Temasek acquired 49 per cent of the shares of Shin from the Shinawatra family members in a deal worth Bt73 billion in January 2006. During 2006 and 2007, Temasek gained dividends from AIS via its holding in Shin for a total of Bt30 billion at the AIS annual dividend payment rate of Bt6.30.
AIS yesterday filed to the Stock Exchange of Thailand its board's resolution to propose a special dividend for 2009 operations at the rate of Bt5 per share for shareholders' approval, given that the company has excess liquidity and foresees no major investment plan in the near future.
The board resolved to propose to the 2010 annual general meeting of shareholders to approve the dividend payment for the company's 2009 operating results at Bt6.30 per share. As the result of an interim dividend of Bt3 per share, which was paid on September 10, 2009, the remaining dividend for second-half operating results for 2009 is Bt3.30 per share.
The board also approved the holding of the 2010 AGM of shareholders on April 8.
An analyst at Ayudhya Securities said the special dividend of Bt5 per share meant the AIS dividend yield of 2009 would be as high as 9.8 per cent.
AIS's share price yesterday closed at Bt88.25, up 5.37 per cent. Shin's share price closed at Bt28.50, up 8.57 per cent.
AIS posted a 2009 net profit of Bt17.1 billion, up from Bt16.4 billion in 2008. It set capital expenditures this year at Bt6.2 billion, an all-time low, given limited market growth.
The company views that the telecom industry this year will see 3-per-cent growth following the economic recovery domestically and globally. Domestic usage is expected to improve as consumption recovers slightly.
Early this past week, Total Access Communication (DTAC) said its capital expenditure this year stood at about Bt6 billion, the same as last year, and in line with market maturity. It wants to maintain its free cash flow at a high level for future investment in 3G-2.1GHz service under licence from the National Telecommunications Commission. 3G licences have not yet been awarded.
DTAC's net profit last year decreased by 11.5 per cent to Bt6.6 billion, due mainly to economic and political uncertainties. Its board this week approved annual dividend payments for the year 2009 at the rate of Bt1.39 per share. Payment, if approved by shareholders, will be made on May 26.
