One of Hong Kong’s oldest business empires, Jardine Matheson, has announced plans for a sweeping restructuring that is expected to sharply increase its market value but could expose it to hostile bids.
Jardine Matheson said it would delist its second-largest unit, Jardine Strategic, in a $5.5bn buyout deal aimed at simplifying a complex, cross-shareholding structure originally set up to thwart takeover bids.
The 190-year-old group is considered one of the territory’s original hongs, or British owned trading houses. It controls a large proportion of Hong Kong’s prime property and major brands, including the Mandarin Oriental Hotel, real estate group Hongkong Land and supermarket operator Dairy Farm, which holds the local 7-Eleven franchise. The group moved its listing from Hong Kong to Singapore in 1994.