- Puncak Niaga Holdings Bhd announced yesterday that the ex-date for the RM1/share special dividend has been set on 4 Dec.

- The entitlement date for the special dividend is 8 Dec while the payment date is 23 Dec.

- The company said that the special dividend will be paid to the depositors whose names appear on the record of depositors on 8 Dec.

- This announcement is in line with expectations that the special dividend will be paid by year-end.

- Recall that the water sale was completed last month with Puncak Niaga receiving the RM1.55bil proceeds from Pengurusan Air Selangor Sdn Bhd (PASSB). Out of the total, RM534mil are to flow through as dividends to shareholders while the remaining ~RM1bil are earmarked for future ventures.

- Note that the proposed disposals were earlier approved in an EGM in Jan.

- With the dividend payment soon to be completed, all eyes are now on Puncak’s next move to fill the earnings gap following the sale of its water concessionaire businesses. Management had earlier noted that it may venture into the oil & gas or plantation businesses. We understand that management is still on the lookout for possible ventures.

- Note that for the 6M period, the oil & gas division posted losses of RM20mil, while its water construction arm made a profit of RM2mil. Earlier, Bursa Malaysia said that Puncak will not be considered as a cash company pursuant to Practice Note 16 of the Main Market Listing Requirements.

- While we are elated that the dividend payout date has been set (following eight years of stalemate in the state’s water restructuring exercise), we maintain our HOLD call and fair value for Puncak as we await further clarity on Puncak’s plans beyond the dividend windfall.

Source: AmeSecurities Research - 3 Nov 2015