SINGAPORE (Nov 24): Maybank Kim Eng has kept its “hold” call on SIA Engineering following the restructuring of its joint ventures with Rolls-Royce and HAECO.

The net proceeds of $186.8 million raises the prospect of a special dividend, but the subsequent drop in earnings from this joint venture has led the brokerage to trim its target price on SIA Engineering by 4% to $3.61.

According to Maybank Kim Eng, if 50% of the proceeds are distributed, this will translate into a special dividend per share of nine cents, which might bring total dividends to 23.5 cents, or a yield of 6.4%, for this FY16.

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