KUALA LUMPUR: POS Malaysia Bhd has recommended a first and final dividend of 12.5 sen per ordinary share less tax.

It said on Wednesday, March 31 the dividend was subject to shareholders' approval at its forthcoming AGM.

"The entitlement date and payment date in respect of the proposed first and final dividend will be determined and announced in due course," it said.

Khazanah Nasional Bhd has proposed to divest its 32% stake in POS Malaysia under the New Economic Model.

AmResearch, had in its morning outlook report, said it was maintaining a Hold on Pos Malaysia with an unchanged fair value of RM2.30 a share.

"Khazanah's entry price into Pos Malaysia has been kept sketchy, with bulk of the deals done off-market," it said.

The research house said Pos Malaysia was expecting its new Mail Processing Hub (MPC) to be up in 4Q10. More importantly, it felt the MPC will now allow Pos Malaysia to position itself as a mail outsourcing distribution centre for the Asia-Pacific region.

"Pos Malaysia's well-due tariff review will certainly be hastened in order to tempt takers for Khazanah's shares in the company. A 10 sen (+20%) hike will swell Pos Malaysia 's FY11F's EPS by 61%. Pos Malaysia is currently trading at a slight 2% discount to DCF valuation of RM2.30/share.

"While there is meagre room for upside at this point - possibilities of a more meaningful upside could emerge should its plan to expand its presence regionally, in hand with the tariff hike, materialise," it said.