Jardine Matheson plans up to US$250M in share buybacks

U.S. one-dollar currency notes; taken September 2018.U.S. one dollar bills.

Jardine Matheson plans to buyback up to US$250 million of its shares by end-June 2022 to reduce the company’s capital, the holding company said in a filing to SGX Thursday.

Holding treasury shares isn’t provided for under the company’s constitution, and any repurchased shares will be cancelled, Jardine Matheson said.

“The buyback is in line with Jardine Matheson Group’s previously announced capital allocation policy. The group remains committed to return gearing nearer to historic levels over the medium term, following the simplification of the group’s holding structure earlier in
the year,” the company said in the filing.

In March, Jardine Matheson announced plans to delist its unit Jardine Strategic in a US$5.5 billion buyout deal in a move to simplify its cross-shareholding structure.

Jardine Matheson’s share buyback plan follows a similar announcement by Hongkong Land, which earlier this month said it would allocate up to US$500 million to buyback shares and cancel them.

Jardine Strategic owns 50.4 percent of Hongkong Land and 59.2 percent of Jardine Matheson.