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| Monday, 23 August 2004 |
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Keells Hotel eyes giant status in Asia The John Keells Group under its new single holding company Keells Hotels Limited is targeting to be a giant in the Asian Hotel sector while meeting more capital efficient investment backed by greater asset and earnings. In this connection, John Keells owned Sri Lankan and Maldivian resorts (city hotels excluded) is to be brought under new "Keells Hotels Limited" to achieve greater capital, administrative and operating efficiencies. Chairman Vivendra Lintotawela said that JKH is now obtaining a listing on the Colombo Stock Exchange (CSE) these shareholders accepting the offer will be allotted listed shares. The total value of the asset is recorded to be more than Rs. 3.5 billion. "The market capitalisation of KHL (priced Rs. 60 per share) upon the completion of the restructuring, will be significantly larger than the aggregate of the four hotel companies currently listed on the CSE hence, its shares are expected to be more liquid and tradable", Lintotawela said. He said that new initiative would give better exposure to the lucrative Maldivian sector of the John Keells Group while reducing investor risk to the volatilities in the local tourism sector. "It would enable us to hold a more capital efficient investment due to the greater asset and earnings backing of a group of nine hotels compared to the single/dual-hotel investments at present held by us", he said. If all shareholders accept the offer, the free float of the listed KHL would be far greater than those of the present listed companies. Hence investors would be swapping their low-liquidity stocks for a more liquid and tradable stock. Minority shareholders of the de-listed Habarana Walk Inn and Unawatuna Walk Inn would be able to receive tradable shares. (SP) |
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