Why Eu yan sang declaring rare 2.5cents interim dividend?
Eu yan sang just announced its result. Despite still having a weak balance sheet with November 2016 notes to be redeemed, it has instead chosen to declare a rare interim dividend of 2.5 cents. I used to own Eu yan sang shares, dividend is always declared after 4th quarter results but this year it is declared after 3rd quarter results. Anyway, it has announced a halt to trading of its shares after SGX query on the sudden rise in share price. Businesstimes has postulated that EU yan sang is preparing for a privatisation move.
If so, then it makes sense why a rare dividend is declared now, so that the majority shareholders can have more money to privatise the company.