Jardine Matheson (JM)/ Strategic (JS)

Jardine Matheson (JM)/ Strategic (JS): CLSA reckons that restructuring remains unlikely for the Jardine Group given the costs involved and a higher level of ownership sought by the family. Assuming no premium, at current prices a straight privatization of JS would still cost US$6.7b and the most likely scenario would involve JS and the family acquiring US$3.8b in JM shares and collapsing the cross holding. House also sees less scope for discounts to narrow, but do see a lot of value in the underlying assets. CLSA maintains its Buy rating on JM (TP US$74.00) and JS (TP US$42.00).