Financial Times

Keells Hotels offers share swap or cash
John Keells Hotels Limited (KHL), the subsidiary created by the conglomerate to manage its hotel companies, has announced its plans to offer shareholders an opportunity to swap their shares of companies to be de-listed for those in the holding company or cash instead.

Extraordinary general meetings are to be convened to obtain the approval of the shareholders of all the subsidiaries that are to be de-listed. The company said that after the voluntary offer made by it following a restructuring plan by the John Keells Group hotels sector, KHL currently holds 96.8 percent in Kandy Walk Inn (KINN), 95.5 percent in Habarana Lodge (HLOG), 97.2 percent in Ceylon Holiday Resorts (CHR), and 81.5% in International Tourists and Hoteliers (ITH).

"Given that KHL holds the majority of the shares in the said companies, and in order to reduce administrative and other operating costs, it has been decided to de-list the securities of the four subsidiary companies," it said in a statement.

KHL has decided to make the following offer to those shareholders of the companies to be de-listed:

Share swap ratio of

- 31 KHL shares for every 22 shares in CHR or cash of Rs. 137.50 per CHR share

- 1 KHL share for every 1 share in HLOG or cash of Rs. 97.00 per HLOG share

- 75 KHL shares for every 74 shares in KINN or cash of Rs. 98.75 per KINN share

- 7 KHL shares for every 16 shares in ITH or cash of Rs. 42.50 per ITH share.

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