JKH raising Rs. 13 billion through Rights Issue

COLOMBO: Driven by its vision of "Building businesses that are leaders in the region", John Keells Holdings Ltd., one of Sri Lanka's premier Blue Chip companies recently floated a Rights Issue which is expected to raise nearly Rs. 13 billion for the Company.

Seen as one of the biggest "capital raisings" so far by a local private sector firm, the Rights Issue by JKH coupled with a Bonus Issue, which will take effect subject to completion of the Rights Issue, is expected to bring the issued capital of the firm to approximately 631 million shares.

Besides underscoring the business daring and acumen typical of JKH, these capital - raising measures are seen as testifying to the current economic health of the country and symptomatic of the State-aided vibrant business climate which is emerging within it.

Announcing these capital-raising initiatives, a JKH press release said John Keells Holdings Limited Board of Directors has resolved that, subject to shareholder approval and approval of the Colombo Stock Exchange:- a) A Rights Issue of one (1) Ordinary Share of Rs. 10 each be offered, for every five Ordinary Shares of Rs. 10 at a price or Rs. 140 per share (inclusive of a premium of Rs. 130 per share) b) 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 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, the release added. These investments could be seen as proof of JKH's "desire to exploit the many opportunities that currently exist in Sri Lanka, India and the region."