Jardine Matheson uses Chase stake to finance buyback

Jardine Matheson (JM) plans to part-finance a share buyback costing up to $908 million via a $550 million issue of bonds convertible into the Chase Manhattan shares it received as a result of Chase Manhattan's acquisition of Robert Fleming. The bonds, which have a maturiy of seven years and carry a coupon of 4.75%, can be exchanged for Chase Manhattan shares at a price of $63.16 - a 22.64% premium to Chase Manhattan's closing share price on 3 August. Investors can excercise the convertible one year after issue, though JM may decide whether to settle in cash or Chase shares.