UOB Kay Hian is keeping Nera Telecommunications at “buy” with a target price of 83.5 cents ahead of an expected special dividend payout following the disposal of its point-of-sale (POS) business. NeraTel sold its POS business to Ingenico Group for $88 million cash, including $10 million held in escrow for nine months in case of any contingent liabilities. (See also: Nera Tel to sell payment solutions business for $88 mil) “The price came in at a 453% premium to book value, 1.9x sales and 31.3x PE, and resulting in estimated one-off gains of $71.5 million,” says UOB analyst Edison Chen in a Tuesday report. “We expect the company to pay out a hefty special dividend soon as sales proceeds come in,” Chen adds. The special dividend, which is expected in 3Q16, will bring 2016 dividend yield to an attractive 25.9%. Chen believes the market ......