Analysts sense special dividend as KepLand soars ahead of results

SHARES of Keppel Land hit a 52-week high on Tuesday, closing 1.1 per cent higher at S$3.65, even while rumours of a potential privatisation by its parent were dismissed by analysts covering the stock.

Despite some market rumours of a potential privatisation, analysts see little prospect of a complete takeover by Keppel Corp, which now owns 54.6 per cent in Keppel Land, citing a lack of business synergy between the two and the high costs of doing so.

Rather, they subscribe to the possibility of a special dividend being announced on Wednesday in Keppel Land's full-year 2014 earnings release, since it has made significant gains from the stake sale in Marina Bay Financial Centre (MBFC) Tower 3 and other assets.