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15 Jul 2008 10:23
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The following announcement was issued today by the Company's 67%-owned subsidiary, Jardine Cycle & Carriage Limited.Β QUOTEJardineΒ CycleΒ & Carriage Invests in VietnamΒ 15th July 2008Β - Jardine Cycle & Carriage today announced that it has subscribed for shares representing a 12% interest in Truong Hai Auto Corporation ("THACO"), a leading Vietnamese automotive company, at a cost of approximately US$41 million. A further equity raising beingΒ proposed by THACO will provide Jardine Cycle & Carriage with the opportunity to increase its interest to 20% within the third quarter of 2008, which would bring its total investment to approximately US$80 million. THACO'sΒ principal activities include the manufacture, assembly, distribution, retail, repair and maintenance of commercial and passenger vehicles inΒ Vietnam. It carries the full range of Kia commercial and passenger vehicles, as well as certain light and heavy commercial vehicles under Foton, King Long, Hyundai and its own THACO brands. It also has a network of showrooms and dealers throughout the country.Β THACO was established inΒ VietnamΒ in 1997 and incorporated as a joint stock company in 2007. Its founder, Mr Tran Ba Duong, is the company's major shareholder. The Chairman of Jardine Cycle & Carriage,Β Anthony Nightingale, said, "The investment provides Jardine Cycle & Carriage with a strategic stake in a leading player in the Vietnamese automotive market. THACO is currently the second largest automobile group inΒ VietnamΒ by unit sales, with an established commercial vehicle business and a newly launched passenger car operation. We believe that THACO offers attractive long term growth opportunities in this rapidly developing market."The investment is being funded from the Group's existing financial resources. The investment is not expected to have a material impact on Jardine Cycle & Carriage Group's net tangible assets and earnings per share for the year endingΒ 31 December 2008. None of the Directors or controlling shareholders of Jardine Cycle & Carriage has any interest, direct or indirect, in the transaction.Β Jardine Cycle & Carriage (JC&C) is a member of the Jardine Matheson group and has a 50.1% interest in Astra, a leading listed Indonesian conglomerate, and other motor interests inΒ Southeast Asia. A Singapore-listed company, JC&C together with its subsidiaries and associates employ some 118,000 people acrossΒ Singapore,Β MalaysiaΒ andΒ Indonesia. Astra is the largest independent automotive group in Southeast Asia, with additional interests in financial services, agribusiness, heavy equipment, mining, information technology and infrastructure. JC&C's directly-held motor businesses inΒ SingaporeΒ andΒ MalaysiaΒ operate under the Cycle & Carriage banner. The JC&C Group represents some of the world's leading motoring marques including Honda, Mercedes-Benz andΒ Toyota.Β Jardine Matheson is a diversified business group focused principally onΒ Asia. Its businesses comprise a combination of cash generating activities and long-term property assets. In addition to JC&C, the Jardine Matheson Group's interests include Jardine Pacific, Jardine Motors, Jardine Lloyd Thompson,Β HongkongΒ Land, Dairy Farm and Mandarin Oriental. These companies are leaders in the fields of engineering and construction, transport services, insurance broking, property investment and development, retailing, restaurants, luxury hotels, motor vehicles and related activities.
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For further information, please contact:Jardine Cycle & Carriage LimitedHo Yeng TatΒ (+65) 6470-8108
This and other Group announcements can be accessed through the Internet at www.jcclgroup.com.UNQUOTE Neil M McNamara, Jardine Matheson Limited for and on behalf of Jardine Strategic Holdings Limited15th JulyΒ 2008www.jardines.com
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