Financial Times

JKH shares up on NTB, MLL merger
John Keells Holdings Limited last week announced plans to merge its subsidiary Mercantile Leasing Limited (MLL) with associate firm Nations Trust Bank (NTB).
JKH shares were the top performer of the day on the Colombo bourse on news of the merger with the share rising to a four week performance high of Rs 147.75 on Thursday but closing the day on Rs 146, Bartleet Mallory Stockbrokers said.

JKH holds a 25 percent stake in NTB and a 75.36 percent stake in MLL.
A JKH statement said the Board of Directors of NTB has resolved to propose to the Board of Mercantile Leasing Limited a merger between the two companies.
“The proposed merger, if approved by the Central Bank, the Board and shareholders of MLL and if sanctioned by Court, will be effected by the issue and allotment of NTB shares to MLL shareholders at a swap ratio of two NTB shares for every one MLL share, with the surviving entity being NTB,” the statement said.

“The Board of Directors of NTB believes the merger will create significant value addition to the shareholders of both NTB and MLL.” The swap ratio is based on an independent valuation of NTB and MLL conducted by the NDB Investment Bank.

If the proposed merger receives the approval of the Board of MLL and the Central Bank, the shareholders of NTB and MLL will receive a detailed communiqué, from their respective companies, regarding the benefits of the proposed merger and appropriate notices including the manner in which the merger is to be implemented.

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