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Unified ownership structure for Jardine Fleming and Robert Fleming groups
Jardine Matheson Holdings Limited on December 3 announced that agreement had been reached with Robert Fleming Holdings Limited for the exchange of its 50% interest in Jardine Fleming Group Limited for shares in Robert Fleming Holdings Limited and up to £40 million (US$66 million) in cash.
Jardine Fleming was established in Hong Kong in 1970 by Jardine Matheson and Robert Fleming, since when it has developed into one of Asia's leading investment banks, with an unrivalled network of offices in the region. The joint venture's shareholders and management now believe that the globalisation of the financial services industry means that the next phase of its development can best be achieved in a unified ownership structure within the Robert Fleming group. The merger will make it easier for the combined group to achieve the efficiency and international reach required by clients in today's increasingly competitive markets.
The business will continue to operate as Jardine Fleming in the Asia-Pacific Region, based in Hong Kong, underlining the focus on strong Asian relationships which is the hallmark of the Jardine Fleming franchise.
Commenting on the transaction, Jardine Matheson Managing Director, Alasdair Morrison said, 'We are delighted to be strengthening our long-standing relationship with Robert Fleming. The merger of Jardine Fleming into Robert Fleming is the logical strategic move in today's global financial markets. The Group's interest in Robert Fleming will provide us with an ongoing exposure to Asian financial markets, and we shall continue to play a supportive role in Jardine Fleming's further development in the Asia-Pacific Region.'
In exchange for its interest in Jardine Fleming, Jardine Matheson will receive 18.6 million new ordinary shares in Robert Fleming representing some 10.7% of its enlarged issued share capital together with up to £40 million (US$66 million) in cash. It is the Company's intention to retain these shares and to seek to acquire up to a further five million shares in Robert Fleming. The Jardine Matheson Group's shareholding, including a 4.5% interest currently held by Jardine Strategic Holdings Limited, would then increase to up to 17% of Robert fleming's enlarged share capital. In Sri Lanka Jardine Fleming is associated with the Hatton National Bank to make JF-HNB securities.
The proposed transaction remains subject to completion and to Robert Fleming shareholders passing a resolution to increase its authorised share capital and to authorise its directors to allot its shares as well as the receipt of the necessary regulatory and other consents. It is expected that completion will take place in early 1999.
Following completion Rodney leach, a director of Jardine Matheson, will join Henry Keswick on the board of Robert Fleming.
Jardine Fleming has operations in 15 countries in the Asia-Pacific Region, seats on 20 stock exchanges and some US$ 19.7 billion in funds under management. Its net assets as at 31st December 1997 were US$486 million and its profit before tax for the year was US$41.4 million.
Robert Fleming is an international asset management and investment banking group operating in 44 countries. Through Robert Fleming in Europe and the Americas, and through Jardine Fleming in Asia-Pacific and Fleming Martin in Africa, the group services an international client base that includes major companies, governments, institutional investors, central banks and private individuals. Robert Fleming's net assets as at 31st March 1998 were £841 million and its profit before tax for the year was £136.1 million. Its global asset management business currently manages £63 billion on behalf of institutional and private investors around the world. The group provides a range of investment banking, corporate finance, capital markets and banking services.
Jardine Matheson is a multinational group of eight core businesses focused primarily on Asia. Its operations employ some 175,000 people and its activities include financial services, supermarkets, consumer marketing, engineering and construction, motor trading, property and hotels.
Standard Chartered 'Euro' Presentation
Standard Chartered Bank recently conducted a seminar on the 'Euro and its implications' for the Bank's Corporate Clientele.
The Presentation made on the EURO, focused on three broad areas relating to the impact of the new currency.
An assessment was first made of the impact of the Euro on the Global Economy together with a review of the impact of the tripolar currency battle that is expected between the US Dollar, the Japanese Yen and the Euro.
The Presentation centered around the Business Issues arising from the arrival of the Euro and the opportunities that would be available to the Business & Financial Community.
The Presentation ended with a review of the implications and challenges to Sri Lanka.
The audience was addressed by Carey Leonard, Chief Executive, SCB and the Presentation was made by Bertal Pinto-Jayawardena, Head of Finance. The Seminar concluded with a discussion over lunch.
Standard Chartered Bank has also established a 'Euro Help Desk' and a EURO Project Team, to assist their Customer network and those needing business related information on the EMU and the EURO.
The Project Team consists of Shivan De Silva (Head of Corporate), Yashwanth Kumar, (Head of Treasury), Kumar Mayadunne (Head of Trade Services) Bertal Pinto-Jayawardena, and Sabry Ghouse (Head of Consumer Banking), all of whom can be contacted at the Bank's Main Office.
NIIT wins Oracle Job in Singapore
NIIT Asia Pacific, the Singapore-based regional operations of leading It group NIIT Ltd, has been appointed by Oracle Asia Pacific Corp. as its first applications reseller in Singapore.
NIIT will target the general business market or companies with annual revenue up to S$500 million. Oracle's customers fall into two broad categories; Global and Major Accounts and General Business. NIIT has been a reseller partner for Oracle's relational database management systems and tools since 1995.
'More than 80 percent of our projects in Singapore are based on Oracle RDBMS, ' said Rahul Patwardhan, the president of the Asia-Pacific region at NIIT. 'We began bidding for Oracle Applications projects in 1997 and we already have two projects in hand, Singapore Sports Council and TransIsland Bus Services.'
NIIT plans to focus on the government and transportation sectors. Ensuring that its team has an indepth knowledge of the target areas. Amidst the economic crisis, 'finding service providers who deliver high quality with quick turnaround cost effectively has become the highest priority for all companies, 'said Patwardhan.' Gone are the days of buying the most popular brand names and spending years studying systems before implementing a solution. NIIT in this scenario stands out as a reliable partner.'
'This year, 25 percent of our business in Singapore will come from the applications business,' said Keith Budge, the Managing Director of Oracle Singapore Pte. Ltd.'We see enterprise resource planning as very important for continued growth over next two years'.
NIIT has three business lines - software and systems integration, education and training business, and multimedia services. NIIT has 120,000 square feet of software development facilities in New Delhi, Mumbai and Calcutta.
MIT is brought to Sri Lanka by Unisoft Institute of Technology, a BOI approved company which at present has two education centres, one at Bambalapitiya junction and the other at Kandy close to the Police Station.
'Harcourts Star Awards' one of the most spectacular and glittering events in the commercial circuit in Sri Lanka was conducted this year on 29th November at BMICH. Harcourts felicitated its 'Star' performers in front of an elite gathering of top Medical Professionals, company's foreign principals, islandwide distributors, leading chemists and large number of eminent persons from other professions.
The Chief Guest at the ceremony was Sri Shivshankar Menon, High Commissioner of India. Sri Shivshankar Menon who was accompanied by Srimati Mohini Menon, the Deputy High Commissioner Sri S. Tripathi and other senior Diplomats was high praise for the way the entire function was conducted.
Delivering the Chief Guest's address Sri Menon highlighted the increasing volume of business between India and Sri Lanka and hoped that pharmaceuticals would constitute a major share in the future.
Addressing the large gathering of more than 1000 invitees, Mr. Ahamed Rheyas the charismatic young Chairman and CEO of Harcourts reiterated the company's Strongly held belief that 'People make the difference' and that 'organizations growth is the result of human endeavour'.
He summarized the Company's future plans and strategic approach by quoting the immortal lines of Robert Frost - 'And miles to go before I sleep'.
Mr. Hidaya Rheyas, wife of the Chairman also presented some of the Awards to the achievers.
At the sale concluded on 24th/25th November 1998, an Invoice of OPI Grade from Berubeula Tea Factory obtained a record price of Rs. 316. This line of Tea was purchased by M/s. Lipton Ceylon Limited and sold by M/s. John Keells Limited.
+ Exchange Rates The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of December 8th, 1998 were as follows:
Buying Selling 100 US Dollars Rs. 6683.19 Rs. 6818.21 The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System on December 08, 1998 were as follows:
Saudi Arabia Riyal Rs. 18.00 Bahrain Dinar Rs. 179.08 Kuwait Dinar Rs. 222.46 Qatar Riyal Rs. 18.55 UAE Dirham Rs. 18.38 Oman Riyal Rs. 175.45 Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers at mid-day on December 08, 1998 were as follows:
Buying Selling 100 US Dollars Rs. 6781.20 Rs.6820.20 100 Sterling Pounds Rs. 11152.75 Rs. 11292.56 100 Deutsche Marks Rs. 4017.54 Rs.4080.32 100 French Francs Rs. 1192.70 Rs.1221.93 100 Japanese Yen Rs.56.08 Rs. 57.07 Average Weighted Prime Lending Rate (AWRP) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended December 4th, 1998 was 16.0 per cent for all banks. The Lowest Prime Rate among banks during this week was 13.5 per cent.Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended November 30th 1998 was 9.2 percent.
* Unit Trust Prices
National Equity Fund
Manager's Selling Price Rs. 7.77 (per unit) Managers Buying Price Rs. 7.30 (per unit) Namal Growth Fund
Manager's Selling Price Rs. 8.96 (per unit) Managers Buying Price Rs. 8.39 (per unit) Namal Income Fund
Manager's Selling Price Rs. 10.53 (per unit) Managers Buying Price Rs. 10.41* (per unit) * After deducting exit fees Ceybank Unit Trust
Manager's Selling Price Rs. 5.82 (per unit) Managers Buying Price Rs. 5.45 (per unit)
Ceybank Century Growth Fund
Manager's Selling Price Rs. 8.06 (per unit) Managers Buying Price Rs. 7.91 (per unit)
Eagle Growth Fund
Manager's Selling Price Rs.8.31 (per unit) Managers Buying Price More than one year 7.99* Less than one year 7.91* Eagle Gift Edged fund
Manager's Selling Price Rs.11.04 (per unit) Managers Buying Price More than one year Rs.11.03 (per unit) Less than one year Rs. 10.92* (per unit)
Eagle Income Fund
Manager's Selling Price Rs.11.02 (per unit) Managers Buying Price More than one year Rs.11.01 (per unit) Less than one year Rs. 10.90*(per unit) * After deducting exit fees applicable for the first year
Pyramid Unit Trust
Manager's Selling Price Rs. 5.66 (per unit) Managers Buying Price Rs. 5.28 (per unit)
* Ex Dividend Price
