Royal Unibrew A/S (RBREW) rose to a record in Copenhagen trading as Nordea Bank AB said the Nordic region’s second-largest brewer will resume dividend payments as soon as next year.
Unibrew rose as much as 3.6 percent to 642 kroner, its highest since the company listed in 1998. The stock added 3.1 percent to 639 kroner at 11:14 a.m. in the Danish capital, with trading volume at 63 percent of the three-month daily average.
Unibrew has suspended dividend payments and share buybacks until 2015 after agreeing last month to buy Heineken NV’s Oy Hartwall brewery for 2.8 billion kroner ($500 million). Nordea said today the Fakse, Denmark-based company probably will resume payments in 2014 as the Hartwall acquisition is a better deal than the bank previously estimated and sales of malt-based drinks are climbing. The company reported yesterday second-quarter net income that beat analyst estimates by 15 percent.
”Even though the stock has gained a lot recently, we still see good long-term potential in the share,” Nordea said. The bank raised a share price estimate to 725 kroner from 675 kroner and repeated a buy recommendation for the stock, which has doubled in value over the last 20 months.
Unibrew has given investors a 3.8 percent dividend yield in the past year. That compares with a 1.9 percent average for the 155 stocks in the Nasdaq OMX Copenhagen all-share index, according to data compiled by Bloomberg.
To contact the reporter on this story: Christian Wienberg in Copenhagen at email@example.com
To contact the editor responsible for this story: Tasneem Brogger at firstname.lastname@example.org