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Jardine Matheson is considering selling additional assets as it seeks to transform from a traditional conglomerate into an investment company focused on high-growth sectors, Bloomberg reported.
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The company is reportedly planning to sell the remaining portion of One Causeway Bay. It sold 13 floors of the building to Alibaba (9988) and Ant Group for HK$7.2 billion last year.
Jardine’s business comprises retail, automotive, and infrastructure. Sources said the company is reviewing other subsidiaries, as well as Zung Fu, the Mercedes-Benz dealer in Hong Kong and Macau.
According to the report, chief executive Lincoln Pan is hiring a team to oversee the company’s portfolio transformation. Pan joined Jardine last December after serving as co-head of private equity firm PAG.
Jardine Matheson, which is listed in Singapore, has seen its share price rise more than 40 percent over the past year. During this period, the company has announced or completed at least US$10.5 billion (HK$81.9 billion) in asset sales and mergers and acquisitions transactions, while actively repurchasing shares to enhance shareholder returns.
Previous reports indicated that Jardine’s core strategy is to expand into Australia and Japan to capture new growth opportunities and lower the geopolitical risks from Southeast Asia. People familiar with the matter said Southeast Asia’s businesses account for 63 percent of its underlying profit.
The company is also seeking to enter new industries beyond its existing portfolio, which is currently concentrated in heavy industry, real estate, retail, and financial services. Earlier this year, Jardine announced the acquisition of Australian diagnostic imaging provider I-MED Radiology Network for US$2.4 billion, marking its entry into the Australian healthcare sector.
Meanwhile, Jardine and its subsidiaries have been divesting capital-intensive assets, including real estate and infrastructure, to release capital for faster-growing sectors and markets. According to Bloomberg data, the company has sold at least US$1.8 billion worth of Hong Kong property assets in the past year.
In other sectors, Jardine’s food and beverage division is reportedly seeking to sell its KFC and Pizza Hut operations in Hong Kong and Taiwan, with interest reportedly coming from Carlyle Group and Yum China. The company is also exploring the sale of its automotive dealership businesses in Malaysia and Singapore.
In addition to asset sales, Jardine has been streamlining its workforce. Sources revealed that the company and its subsidiary DFI Retail Group have carried out multiple rounds of layoffs among back-office staff.
