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UPDATE 1-Jardine to make partial offer for C&C

(Adds details, background)

SINGAPORE, Sept 20 (Reuters) - Jardine Strategic Holdings said on Friday it intended to make a voluntary conditional partial offer for Singapore's Cycle & Carriage (C&C) to raise its stake in one of Asia's largest automotive groups.

Hong Kong-based Jardine said it was offering S$4.76 per C&C share in cash -- a total of about S$241.8 million ($136 million) -- to lift its stake to 50.2 percent from 29.13 percent.

Jardine's announcement of its firm intention to proceed with the offer, which was first unveiled in July, came as C&C shares slumped 10 percent after the Singapore company's unit PT Astra International said on Thursday it was planning a rights issue to raise up to US$100 million.

Shares of C&C, which owns 32 percent of the Indonesian auto maker, sank on expectations that it may have to borrow funds as a result of Astra's rights issue, analysts said.

A C&C spokesman declined to comment, but the company -- a retailer and distributor of various vehicle makes in Singapore, Malaysia, Australia and New Zealand -- earlier said it would participate in a rights issue to protect its stake in Astra.

C&C shares closed down 16 cents at S$3.58 on Friday, while Jardine ended three cents higher at S$2.61.

"Increasing our interest in C&C is in line with our strategy of building our stakes in group companies and supporting their development," Percy Weatherall, group managing director at Jardine Strategic, said in a statement.

Weatherall said it would also enable C&C to continue to benefit from being a major listed company in Singapore.

Jardine said the partial offer was subject to the condition that Malaysia's Edaran Otomobil Nasional Bhd (EON), which has a 21.13 percent stake in C&C, would receive approval from its independent shareholders to accept it.

Jardine said it has a 19.27 percent stake in EON, which will hold an extraordinary general meeting on the offer on October 3.

The Hong Kong-based firm said it has obtained irrevocable undertakings from shareholders owning 42.32 percent of the Malaysian auto and banking group to vote in favour of accepting the partial offer.

Jardine said its partial offer would be funded from existing resources.