John Keells Hotels goes for Rights Issue to raise Rs 3.6 billion

The Board of Directors of John Keells Hotels has resolved that, subject to shareholder approval and approval of the Colombo Stock Exchange, a Rights Issue of one (1) Ordinary Share be offered, for every three (3) Ordinary Shares at a price of Rs 10.00 per share the company said in a release.

The Directors of the company have resolved that the price of Rs. 10.00 per share is fair and reasonable to the company and to all existing shareholders.

The total number of shares to be issued is 364,036,695. The current stated capital of the company is Rs.5,859,879,989.

The proceeds of the Rights Issue will be utilised to fund the refurbishment of hotels in Sri Lanka as well as for new hotel projects and for the acquisition of land for new resort hotels.

The Rights Issue is subject to the Exchange approving in principle the issue and the listing of shares and obtaining shareholder approval at a General Meeting, the release said.