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."
 REUTER
