JARDINE MATHESON PLANS FOUR-FOR-ONE BONUS ISSUE

  Jardine Matheson Holdings Ltd
  &lt;JARD.HKG> said it planned a bonus issue of four new "B" shares
  of 20 H.K. Cents each for every ordinary share of par value two
  dlrs.
      A company statement said the firm expects to pay a total
  1987 dividend of four cents per "B" share, while the "A" share
  dividend will be maintained at last year's level of 40 cents a
  share.
      Jardine Matheson announced earlier a 205 pct jump in 1986
  net profits to 479 mln dlrs from 157 mln in 1985.
      Shareholders' funds increased to 5.02 billion dlrs from
  4.77 billion in 1985, 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 &lt;HKLD.HKG>,
  Jardine Fleming Co Ltd, and its business in Japan.
      He said the group's stake of about 35 pct in Hong Kong
  Land, which will be lowered to 26 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 &lt;Jardine Strategic Holdings Ltd>.
      Jardine Strategic will also hold majority stakes in the two
  companies spun off from Hk Land -- &lt;Mandarin Oriental
  International Ltd> and &lt;Dairy Farm International Holdings Ltd>
  -- plus cross holdings with Jardine Matheson.
      Jardine Matheson, which had debts of about 2.7 billion dlrs
  last year, will become debt free after the restructuring.
      "A positive cash flow from operations and disposals,
  continuing into 1987, 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 20 cents to 24.90 dlrs at
  midday on the Hong Kong stock market. In early trading it had
  fallen to 24.30 dlrs because of rumours yesterday that the firm
  planned a rights issue.
  

