| JARDINE MATHESON REPLACES "B" SHARE BY BONUS ISSUE | |
| Jardine Matheson Holdings Ltd | |
| <JARD.HK> said it will withdraw the previously announced | |
| four-for-one bonus issue of "B" shares and replace it by a | |
| two-for-five bonus issue of ordinary shares. | |
| A statement said the firm expects to pay total dividends | |
| for 1987 of not less than 40 cents a share on the expanded | |
| capital. | |
| Jardine Matheson decided to withdraw its issue because of a | |
| joint announcement earlier today by Ronald Li, chairman of the | |
| Stock Exchange of Hong Kong, and Securities Commissioner Ray | |
| Astin, that the listings of new "B" shares would be barred. | |
| The official announcement said this will include the | |
| proposal by Jardine Matheson. | |
| But the Jardine statement quoted chairman Simon Keswick as | |
| saying: "We continue to believe that the issuing of "B" shares | |
| would benefit shareholders, and regret that they will not be | |
| given the opportunity to vote on the matter at this stage." | |
| Keswick said the "B" share issue will benefit Jardine | |
| Matheson's shareholders by giving the firm flexibility to issue | |
| ordinary shares for expansion in future without diluting | |
| existing shareholders' voting rights. | |
| However, he added: "We certainly welcome (the Secretary for | |
| Monetary Affairs) David Nendick's referral of this very | |
| important matter to the Standing Committee on Company Law | |
| Reform and are hopeful that the process will lead to the | |
| development of general principles which can be embraced by all | |
| constituents of the Hong Kong market." | |