19 August 2019

Jardine puts US$700 mln into Zhongsheng Group, WSJ says

Conglomerate Jardine Matheson Group, through its unit Jardine Strategic Holdings Ltd., will invest up to US$722 million in one of China’s biggest car dealers, the Wall Street Journal reported Monday. Jardine will buy 238.6 million shares in Beijing-based Zhongsheng Group Holdings Ltd. (00881.HK) and subscribe for a further HK$3.09 billion (US$398 million) worth of convertible bonds, the newspaper said, citing Zhongsheng’s regulatory filing. Jardine, which is a major operator of auto dealerships in East Asia, will have an up to 20 percent stake in Zhongsheng on conversion of the bonds, according to the filing. Jardine’s subscription price of HK$10.799 per Zhongsheng share represented a 6 percent discount to the stock’s closing price of HK$11.52 on Friday last week. News of the investment sent Zhongsheng’s shares up as much as 20 percent in early Monday trading, the report said.

– Contact HKEJ at [email protected]



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