Jardine Matheson Plans $500 Million Share Buyback to Boost Returns

Dow Jones
Jun 16
 

By Megan Cheah

 

Jardine Matheson plans to buy back $500 million worth of shares through the end of 2027 as part of a broader effort to enhance shareholder returns.

The Asia-Pacific-focused conglomerate, which is listed in London, Singapore and Bermuda, is targeting annual total shareholder returns of at least 9% over the five years through 2030, the company said Tuesday.

To achieve this goal, Jardine aims to increase its dividend by at least 5% annually and recycle at least $4 billion of capital from its portfolio. The capital-recycling target excludes commitments by property arm Hongkong Land and Indonesian subsidiary Astra International, which have separately announced their own returns-boosting plans.

Jardine also aims to generate at least $200 million in additional profit after tax and minority interests from what it calls "high-quality growth pillars" through acquisitions. Potential targets include businesses capable of generating $100 million in profit within five years and scaling from a base in the Asia-Pacific region.

These targets should also be cash-generative and contribute to Jardine's dividend and earnings objectives. The conglomerate intends to acquire controlling or joint-controlling stakes in investments, allowing it to influence strategy and align management with its long-term goals.

Jardine's objective is to become an investor that builds a diversified portfolio of scaled Asia-Pacific businesses, said Chief Executive Lincoln Pan. Its portfolio includes Hongkong Land, multiformat retailer DFI Retail Group--which operates brands such as 7-Eleven in several Asian markets--and investment arm Jardine Cycle & Carriage, which holds the Astra stake and operates car distributors in Singapore and Malaysia.

Jardine said it has made "significant progress" towards its goals, including by simplifying its corporate structure through take-private moves and asset recycling. It recently agreed to acquire Australian diagnostic-imaging provider I-MED Radiology Network in a deal valued at $2.4 billion, marking its first major investment in recent years.

Jardine Matheson's Singapore-listed shares were recently down 4.0% at $63.34, bringing its year-to-date decline to 7.4%.

 

Write to Megan Cheah at megan.cheah@wsj.com

 

(END) Dow Jones Newswires

June 16, 2026 01:20 ET (05:20 GMT)

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