	jardine matheson plans four for one bonus issue jardine matheson holdings ltd jard hkg said it planned a bonus issue of four new b shares of h k cents each for every ordinary share of par value two dlrs a company statement said the firm expects to pay a total dividend of four cents per b share while the a share dividend will be maintained at last year s level of cents a share jardine matheson announced earlier a pct jump in net profits to mln dlrs from mln in shareholders funds increased to billion dlrs from billion in the statement said it quoted chairman simon keswick as saying jardine matheson achieved the good performance through satisfactory results in most sections especially hong kong land co ltd hkld hkg jardine fleming co ltd and its business in japan he said the group s stake of about pct in hong kong land which will be lowered to pct after the completion of a reorganisation is a long term investment and now stands at a level which causes us no financial strain or problems of asset imbalance keswick said the issue of new b shares will give the group the flexibility in the future to issue ordinary shares for expansion without jeopardising the shareholding stability which has been brought about through the group s recent restructuring he said the new issue is pending approval from both the firm s shareholders and warrant holders adding an appropriate adjustment will be made to the warrant exercise price the jardine group has nearly completed its reorganisation with jardine matheson transferring its control of hk land to the new unit jardine strategic holdings ltd jardine strategic will also hold majority stakes in the two companies spun off from hk land mandarin oriental international ltd and dairy farm international holdings ltd plus cross holdings with jardine matheson jardine matheson which had debts of about billion dlrs last year will become debt free after the restructuring a positive cash flow from operations and disposals continuing into has transformed our balance sheet keswick said he noted the firm last year sold interests in airfreight operations australian properties and trucking business and its remaining u s oil and gas activities jardine matheson decided to make a provision against its general trading business in the middle east in view of the continuing weakness of oil prices keswick said but he said the operations would be profitable in the longer term he said the firm s function has evolved into one primarily of strategy structure and financial and personnel policy he said jardine matheson will reduce the size of the board of directors but will simultaneously create a new pacific regional board he gave no further details of the change jardine matheson shares rose cents to dlrs at midday on the hong kong stock market in early trading it had fallen to dlrs because of rumours yesterday that the firm planned a rights issue reuter 
