Jardine restructuring could tempt an activist

Jardine Cycle & Carriage

16/03/2021 03:04

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, March 16 (Reuters Breakingviews) - The Hong Kong
conglomerate’s plan to end a double holding structure more than
halved its discount to net asset value to 10%, per Breakingviews
calculations. While that will ward off some pushy investors,
others may smell a chance for more change. And there is plenty
to clean up.
    Full view will be published shortly.
    On Twitter https://twitter.com/JennHughes13
    
    CONTEXT NEWS
    - Singapore-listed Jardine Matheson on March 8 initiated an
offer to buy the 15% it does not own of Jardine Strategic for
$5.5 billion, a 20% premium to the undisturbed share price. 
    - The deal would simplify the Hong Kong-based group’s
structure by eliminating Strategic, a second holding company
created in the 1980s to protect the controlling Keswick family
from attacks by corporate raiders. 
    - Jardine Matheson shares have increased 21% since the offer
was announced.
    - As part of the deal, Jardine Strategic’s 59% holding in
Jardine Matheson would be cancelled. 
    - For previous columns by the author, Reuters customers can
click on  HUGHES/ 
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Jardine Matheson announcement    https://links.sgx.com/FileOpen/JMH%20J.ashx?App=Announcement&FileID=651169
 
Conglomerate Jardine Matheson offers to buy rest of group unit
for $5.5 bln     urn:newsml:reuters.com:*:nL4N2L60L6
BREAKINGVIEWS-Jardine picks opportune moment for historic buyout
    urn:newsml:reuters.com:*:nL1N2L602A
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Jeffrey Goldfarb and Sharon Lam)
 ((jennifer.hughes@thomsonreuters.com; Reuters Messaging:
jennifer.hughes.thomsonreuters.com@reuters.net))