$80 mln ADB investment in JKH’s private placement of shares

John Keells Holdings is raising funds through a private placement for a maximum cumulative amount of the Sri Lankan Rupee equivalent of US$80 million to Asian Development Bank through the issuance of up to a maximum of 122,500,000 new ordinary shares of the company in two phases, collectively the “Proposed Private Placement”, which will be a maximum post-issue dilution of 8.5 per cent.

The Proposed Private Placement would be for an upfront issue of ordinary shares (“Initial Placement Shares”) for an initial issue size of rupee equivalent of $50 million (“Phase 1”), the company announced on Monday.

“At the time of issue of the Initial Placement Shares, the company will also issue to ADB non-tradable/non-transferable options (“Options”) which will entitle ADB, at its option and discretion, to subscribe for additional new ordinary shares of the company (“Option Shares”) within a period of 12 months from the date of subscription for the Initial Placement Shares, for an investment amount of up to the rupee equivalent of $30 million (“Phase 2”),” the statement said.

The issue of shares by way of the Proposed Private Placement is subject to the Securities Exchange Commission and the Colombo Stock Exchange  approving in principle the issue and listing of such shares, the company obtaining shareholder approval at an Extraordinary General Meeting, approval of ADB’s Board of Directors and conformance with regulatory requirements, as applicable to the parties.