The two flagship companies of the Jardines group - Jardine Matheson Holdings (JMH) and Jardine Strategic Holdings (JSH) are facing more shareholder dissent as another shareholder in both companies plans to vent its opposition at the group's upcoming annual meeting.
Marathon Asset Management, a London-based investment management firm which has held stakes in JMH and JSH for more than seven years, said it had informed the group it planned to vote against resolutions to re-elect directors at the meeting.
Opposition to re-election - normally a standard annual vote - is intended to demonstrate Marathon's displeasure that the companies' cross-shareholding structure appears to have hampered their share performance.
Marathon joins a growing number of disillusioned shareholders who have emerged in the past week to express opposition to the cross-shareholdings.
Its decision follows Brandes Investment Partners' unprecedented tabling of resolutions aimed at breaking up the shareholding structure. The San Diego-based investment management firm is also trying to boost the value of the group's shares. 'We have stated our intentions independently of Brandes,' said Marathon Asset Management director Jeremy Hosking. 'We can no longer support the directors of Jardine Matheson and Jardine Strategic.' Marathon owns less than 5 per cent of JSH and holds a minimal investment in JMH.
Under the current board structure, seven directors sit on the board of both companies, and JMH owns 61 per cent of JSH, while JSH has 38 per cent of JMH.
Mr Hosking said the shareholding arrangement and board structure were geared to serve the interests of the Keswick family, which holds dominant positions on the companies' boards but holds only about 5 per cent of JMH's capital.