8th Mar 2021 14:39
Jardine Matheson Holdings Ltd - Hong Kong-headquartered holding company with interests in retail, property, hotels and motor dealerships - Sets out to simplify parent company structure into a single holding company with a "conventional ownership structure". Jardine Matheson will buy the 15% of Jardine Strategic Holdings Ltd that it doesn't already own. It then will cancel Jardine Strategic's 59% shareholding in Jardine Matheson. Jardine Strategic minority shareholders will receive USD33.00 in cash per share, valuing the 15% stake at USD5.5 billion.
"The simplification of our ownership structure is a natural step in the evolution of the group and will create value for our shareholders," says Executive Chair Ben Keswick. "Taking full ownership of Jardine Strategic is consistent with our policy of investing further in the growth prospects of our existing businesses and highlights the benefits of consistently maintaining the group's financial strength."
Jardine says the existing complex structure resulted from a series of restructurings in the 1980s, long after the group was founded in 1832. In addition to owning 59.3% of Jardine Matheson itself, Jardine Strategic owns majority stakes in the group's operating subsidiaries: 50.4% of Hongkong Land, 77.6% of Dairy Farm, 79.5% of Mandarin Oriental and 75% of Jardine Cycle & Carriage.
Jardine Matheson also says it will announce 2020 results on March 11. These are expected to be in line with market expectations, with underlying net profit of USD1.09 billion and underlying earnings per share of USD2.95. The restructuring will significantly increase EPS, as it will consolidate all of Jardine Strategic's profit as a wholly owned subsidiary.
Current stock price in Singapore: SGD62.00, up 15% on Monday
Year-to-date change: up 11%
By Tom Waite; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Jardine Math.sr