JKH announces rights issue to raise Rs 12.9 b

COLOMBO: The diversified conglomerate John Keells Holdings Limited (JKH) yesterday announced a rights issue of one Ordinary Share of Rs. 10 each be offered, for every five Ordinary Shares of Rs. 10 at a price of Rs. 140 per share (inclusive of a premium of Rs. 130 per share.); and subject to the completion of the Rights Issue, a Bonus Issue of one Ordinary Share for every seven Ordinary Shares be made, on the enhanced capital.

The Rights issue will raise approximately Rs. 12.9 billion for the Company. The issued capital of JKH following the Rights Issue and Bonus Issue will be approximately 631 million shares.

Financial analysts said this is the largest capital rating in Sri Lanka.

The Company has recently made substantial investments, including the acquisition of two hotel properties in the Maldives, the construction of a new hotel in the Maldives, the construction of the second apartment complex - "The Emperor", the setting up of a BPO Company and the purchase of an additional stake in South Asia Gateway Terminals (Pvt) Limited.

The proceeds of the Rights Issue will strengthen the balance sheet and fund the Company's project pipeline.