August 10 (LBO) – John Keells Holdings said Thursday that it bought up about a million shares or just over an eleven percent stake in Associated Motorways Limited, through a private placement.
A block of 1,032,231 shares of ten rupees was sold at a premium of 370 rupees apiece, a shareholding of 11.12 percent of the issued share capital of AMW.
The company made a partial offer to shareholders for a ten percent stake in the company, though the offer was subject to a further ten percent acquired through a private placement.
After the placement, John Keells told the market, their offer was now unconditional and share holder had another 14 days to sell out if they wanted to.
Few of the existing minority shareholders had taken up the offer, with some believing the stock was undervalued and opting to hold out for longer term gains.
John Keells said shareholders holding just 3026 shares or 0.37 percent of the issued share capital of AMW had responded to its offer for a ten percent stake.
For excess shares of over 10 percent, the company picked up 27,234 shares or 3.31 percent, John Keells said in a statement to the Colombo Stock Exchange.
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