Adaro Andalan Indonesia's Divestiture May Lead to Special Dividend — Market Talk

Adaro Andalan Indonesia's divestment of its 47.99% stake in Australia's Kestrel Coal Group for up to $2.4 billion may lead to a special dividend, UOB Kay Hian analysts say in a research report. The divestment is progressing and could be completed in 1Q 2027, proceeds from which may be distributed as a special dividend, the analysts say. However, the brokerage cuts its 2026 earnings forecast for the mining company by 10.1% to reflect increased cash costs owing to higher fuel prices. It lowers the stock's target price to 10,900 rupiah from 13,000 rupiah, with an unchanged buy rating. Shares are 0.7% higher at 7,500 rupiah. (ronnie.harui@wsj.com)