Jardine Matheson to restructure via US$5.5b cash acquisition

It will acquire 15% issued share capital of Jardine Strategic Holdings.

Jardine Matheson Holdings has announced its plans to simplify the parent company structure of the group by acquiring by cash 15% issued share capital of Jardine Strategic Holdings that it does not already own.

The acquisition, valued at approximately $7.4b (US$5.5b), will result in a single holding company with a conventional ownership structure and a further increase in the group’s operational efficiency and financial flexibility.

Executive chairman Ben Keswick noted that the simplification of the group’s ownership structure is a natural step in its evolution and will create value for its shareholders.

“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,” Keswick said.

The group has also announced its intention subsequently to cancel Jardine Strategic’s 59% shareholding through a reduction of capital at Jardine Matheson's annual general meeting in 2022.

Jardine Strategic shareholders will be entitled to $44.55 (US$33) in cash for each Jardine Strategic ordinary share they hold.

The acquisition is expected to be in effect by April 2021.