NU Online News Service, Sept. 15, 1:10 p.m. EDT

A major shareholder of British-based insurance broker Jardine Lloyd Thompson (JLT) will increase its holdings in the firm and invest an additional $260 million to strengthen the firm's independence, the brokerage says.

In securities filings today, JLT says the Hong Kong-based business group Jardine Matheson will acquire close to 22 million additional shares in JLT, increasing its stake in the firm to 40 percent.

Jardine Matheson will also invest £166 million (U.S. $263 million) into JLT. The investment is “expected to strengthen JLT's competitive position” and preserve “JLT's independence,” the companies say.

JLT says Jardine Matheson has “no intention of divesting any shares in JLT” with the “core strategic investment.”

“Jardine Matheson has been supportive investor in JLT for many years,” says Geoffrey Howe, chairman of JLT, in a statement. “We believe that the partial offer reinforces Jardine Matheson's long-term commitment whilst preserving JLT's independence and presenting shareholders with an opportunity to realize part of their investment at an attractive premium and to retain a substantial ongoing interest in the future of JLT.”

“We have enjoyed a long association with JLT and one of its predecessor companies, Jardine Insurance Brokers, which we founded in the early 1970's,” adds Anthony Nightingale, managing director of Jardine Matheson. “JLT is a core strategy investment of the Jardine Matheson Group and the partial offer reinforces our commitment to the stability, independence and long-term growth of JLT.”

JLT has been the subject of buyout rumors in the past. According to reports, Dominic Burke, JLT's chief executive, says the move reinforces the firm's independence and should dispel take-over rumors.

JLT Group operates in 34 countries and has about 6,200 employees. For the year of 2010, the company reported fees and commissions of more than $1.15 billion and operating profit in excess of $184 million.

Jardine Matheson is a diversified business group founded in 1832 as a trading company in China. It employs more than 300,000 people.

Special Reports /

Major Shareholder Boosts Independence, Says JLT

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