SINGAPORE (Reuters) – Jardine Matheson Holdings Ltd said Monday it plans to buy the remaining 15% of Jardine Strategic Holdings Ltd which they do not already own for around $ 5.5 billion to structure the sprawling Asian conglomerate to simplify.
Singapore-registered Jardine Matheson, whose businesses include construction, aircraft and cars, has offered to pay $ 33 in cash for each Jardine Strategic allotment, representing base price of 20% to the closing price of the stock on Friday.
“This will result in a single property company with a normal property structure and another increase in the operational efficiency and financial flexibility of the organization,” she said in a statement.
Jardine Strategic is a listed company that owns most of its core listed interests.
Its portfolio includes Hongkong Land Holdings Ltd, supermarket chain Dairy Farm International Holdings Ltd and Mandarin hotel operator Oriental International Ltd, as well as car companies Jardine Cycle & Carriage Ltd and PT Astra International Tbk on Jakarta list.
Jardine Strategic also has a 59% stake in Jardine Matheson himself, who will be sacked following the contract. Their stock exchange lists will also be canceled.
Founded in 1832, Jardine Matheson has businesses across China and Southeast Asia, with Hong Kong as its largest market.
Shares of Jardine Matheson were 8.3% higher while Jardine Strategic jumped 20% in Monday morning trading, but the overall market was up 1.8%.
Reporting by Aradhana Aravindan in Singapore; Edited by Christopher Cushing