Q: What will left of this company after the sale of their packaging unit? Is it worth waiting for the post sale payment of $20. Will they keep paying a dividend after the sale?
Thank you.
Thank you.
5i Research Answer:
TCL is keeping its media and printing divisions, which will have less than $1B in sales. This includes retail services and its printing and educational publishing businesses. But it will be much smaller overall, especially as TCL plans to return $20/share in cash to shareholders. Essentially, it is a 're-start' and we need to see what the company will do going forward. We need to await the circular to see official dividend news. But we expect some reduction in the regular dividend, certainly, if not elimination. We would be OK holding, for now but would be more reluctant to buy on this news and the big increase.