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  • mhm.

  • Talk about a deal for long enough, and it will materialize.

  • Story.

  • Asian Trading house Jardine Matheson is buying out its sister company, Jardine Strategic, for $5.5 billion.

  • This is something that bankers and shareholders have speculated could happen.

  • For decades.

  • The two have acted as dual holding companies for the Hong Kong based Jardines empire, which includes Mandarin Oriental hotels, vast property portfolio and retail chains across Asia, among other units.

  • Buying out strategic leaves a simpler structure with just Jardine Matheson sitting on top of the group.

  • It also caught strategic at a lowest point.

  • It had rallied from its March 2020 Nadiya trading at six times forecast earnings to 11 times, but that's still below average.

  • The structure was designed in the 19 eighties to protect the Kazaks Jardines controlling family from raids by fellow Hong Kong tycoons on their holdings.

  • It worked, but it created inefficiencies.

  • Removing the second holding company will lift earnings only slightly, but will boost earnings per share by far more.

  • One strategic holding in Jardine Matheson has been canceled.

  • The announcement was momentous, given the years of chatter, but nothing really changes in Jardines operations or holdings as typical of the company.

  • It's worth $47 billion but very much drives to keep a low profile.

  • Hong Kong's many speculators and gossips will just have to find another target.


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B1 strategic earnings hong kong holding company

Breakingviews TV: Defences down

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    林宜悉 posted on 2021/03/11
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