13th Oct 2026 03:20
(Alliance News) - Jardine Matheson Holdings Ltd on Tuesday said it now has full ownership of Gammon Construction and lifted its guidance for full-year 2026.
The Hong Kong-based diversified investment company expects underlying earnings per shares to be between USD5.50 and USD5.65 in 2026, up from previous guidance of USD5.33.
"This represents growth of between 3% and 6% over 2025 EPS, adjusted for disposals and reclassifications in 2025, and primarily reflects continued solid performance across the portfolio in the first three quarters of 2026," the company said.
Jardine Matheson also announced that it has singed an completed an agreement to acquire a 50% stake in Gammon Construction from London-based infrastructure group Balfour Beatty PLC.
Following this, Jardine Matheson is now the sole owner of the Hong Kong-based construction and engineering company.
Jardine Matheson has been invested in Gammon since 1969.
Then total consideration payable to Balfour Beatty will be GBP250 million, paid in three equal tranches on Tuesday, December 31, 2027 and December 29, 2028.
Jardine Matheson said: "The transaction is expected to be modestly accretive from its first year. Pricing is not subject to post closing adjustments, and Jardine Matheson will acquire the business inclusive of all future dividend entitlements and cash on balance sheet."
The acquisition "enhances growth and scale" for Jardine Engineering & Infrastructure, the company added.
Chief Executive Officer Lincoln Pan commented: "Gammon Construction marks our second significant transaction in 2026 and is a strategic, synergistic expansion of our Jardine Engineering & Infrastructure vertical. The transaction is immediately accretive to Jardine Matheson's underlying net profit. Our goal remains doubling the earnings of JE&I in the coming years by focusing on strategic investments that expand controlled earnings and capabilities across Asia.
Jardine Matheson shares opened 0.5% lower at USD55.53 each in Singapore on Tuesday morning, while Balfour Beatty shares closed up 0.6% at 881.00 pence each in London on Monday.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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