$DBS (D05.SG)$Research noted in a report on the same day that the investment, and subsequently the enhanced valuation of the RDC business, validate Singtel’s RDC approach to target mainly hyper-scalers and enterprises to some extent.
The research house added that theS$1.1 billionis part of a broader divestment target ofS$6 billionset by Singtel over the next two to three years, to bring its return over invested capital above its average cost of capital.
As a result,consensus is likely to raise total annual dividend per share to 14.9 Singapore cents, at about 6.4 per cent yield, said DBS.