1979 founded John Keells Holdings PLC announced yesterday that they had entered into a ground-breaking deal with the Asian Development Bank (ADB).
The deal will mark the first time a multi-lateral donor agency has become a shareholder at JKH. An 8.5% stake (122,500,000 ordinary voting shares) will be awarded to ADB via private placement in two phases. The deal is valued at $80 million.
Founded in 1968, the Asian Development Bank consists of 68 members, 49 from the Asia- Pacific Region. It is also Sri Lanka’s largest provider of multi-lateral development assistance.
Phase 1, also referred to as the Initial Placement Share, will be valued at $50 million, and each share will be sold at LKR 154.50 with a 10% premium via an Extraordinary General Meeting, JKH received approval for phase 01, which will be subject to further approval by the SEC and CSE.
Phase 02, if exercised, will value at $30 million, and the issue size will be subject to the maximum number of shares issued by the ADB.
JKH plans to utilize the proceeds of the deal to strengthen the group’s environment and governance and expand the Keells Supermarket business. Additionally, the proceeds will be used to fund the landmark Cinnamon Life integrated resort and Colombo Port’s West Container Terminal.
No.820, Mount Cresent,Malabe,Sri Lanka