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Jardine Matheson Holdings Limited

Joint Release

To : Business Editors For immediate release


JARDINE PACIFIC'S LIFE INSURANCE STAKE TO BE ACQUIRED BY JOINT VENTURE PARTNER, COLONIAL

14th February 1997 -- Jardine Matheson Holdings Limited today announced that its joint venture partner, the Australian-based financial services group Colonial Limited, has agreed to acquire the 50 per cent interest in the life insurance group Jardine CMG Life ('Jardine CMG') held by Jardines' wholly-owned subsidiary Jardine Pacific Holdings Limited.

Jardine CMG has wholly-owned operations in Hong Kong and Singapore, and further joint ventures with local partners in Indonesia, the Philippines and Thailand.

Colonial - through its subsidiary CMG Asia - has agreed to acquire the balance of Jardine CMG for a total consideration of US$163 million. Included within this transaction, Jardine Pacific's listed Philippine's subsidiary, Jardine Davies, is selling its 40 per cent interest in Jardine CMG Life Insurance Co. Inc to Colonial for US$15 million. Of the total consideration, 25 per cent will be payable upon completion, which is set for 28th February pending regulatory approvals, and Jardine Pacific has agreed to fund the balance for up to two years. Jardine Pacific will record a net exceptional profit of some US$130 million in respect of the transaction in its 1997 results.

As part of the arrangements, CMG Asia can continue to use the Jardine name under certain conditions under licence for up to three years. The companies have also signed an agreement to facilitate the cross-selling of products and services between the groups.

Colonial's Group Managing Director and Chief Executive Officer, Mr Peter Smedley, and Jardine Pacific's Chairman, Mr Anthony Nightingale, said in a joint statement that the move was appropriate for the current strategy being pursued by each group. Both parties have gained from the partnership, and would be pleased to work together on future projects.

Commenting on the transaction, Mr Anthony Nightingale said "We believe that the continued development of the Life Assurance business in Asia requires specialist skills and significant long term investment. We are pleased to have helped build a successful business but feel that the time is right for Jardine Pacific to unlock the value built up in the investment so as to concentrate more fully on businesses where we can bring more added value. We shall be working with Colonial to ensure a smooth transition and we wish them continued success with the business."

Mr Smedley said the acquisition would help position Colonial in the lead-up to listing on the Australian Stock Exchange in the second quarter of 1997. "We wanted to provide investors with a greater stake in the growth market of Asia," he said. "It was an important part of our platform for public listing that we increase our investment in Asia, the fastest growing life insurance market in the world. It is currently proposed to fund this purchase predominantly through a specific capital raising at the time of listing, details of which will be included in our prospectus to be issued in the second quarter of this year."

-end-

For further information please contact:



Jardine Matheson Limited
Anthony Nightingale 		Tel: (852) 2843 8540 (office)
Ludgate Asia Limited
Nick Footitt 		Tel: (852) 2543 5413 (office)
Colonial Limited
Matthew Percival
Head of Group Public Affairs
Tel: (613) 9200 6618
Simon Morgan
Public Affairs Manager		 Tel: (613) 9200 6459

Source: Jardine Matheson Holdings Limited
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