Attracting US$75 million (Rs.27 billion) from a foreign investor of the stature of Canada-based Fairfax Financial Holdings at a time when the economy is in dire straits is a big boost for the company, Krishan Balendra, Chairman John Keells Holdings PLC (JKH) pointed out. JKH announced plans this week to raise the equivalent of $75 [...]

Business Times

JKH says ‘proud’ of new Fairfax investment

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Attracting US$75 million (Rs.27 billion) from a foreign investor of the stature of Canada-based Fairfax Financial Holdings at a time when the economy is in dire straits is a big boost for the company, Krishan Balendra, Chairman John Keells Holdings PLC (JKH) pointed out.

JKH announced plans this week to raise the equivalent of $75 million worth foreign direct investment through a private placement unlisted convertible debentures which will be issued at Rs.130 each, leading to the issue of 208,125,000 debentures to Fairfax with a maturity period of three years.

However some investors in the stock market were not too happy with the debenture issued by the company in this regard.

“We are not shareholders. If we were, I’d be upset. Significant stake for a song wrapped in “debenture” for circumvention. The right thing to do would have been a rights issue guaranteed by the same group,” one investor noted.

Mr. Balendra added that the shareholders of the company are supportive of this investment.

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