Jardine Matheson uses Chase stake to finance buyback

Jardine Matheson is issuing $550 million of bonds convertible into Chase Manhattan shares in order to part-finance a share 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.

In total, JM received cash and Chase Manhattan shares worth ...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222