JKH to fully subscribe its entitlement of NTB rights issue

Nov 06, 2017 (LBO) – Sri Lanka’s diversified conglomerate John Keells Holdings said it will fully subscribe to its entitlement of the proposed rights issue of Nations Trust Bank (NTB).

NTB expects to raise a total of 3.21 billion rupees through the rights issue, of which the JKH share of the rights issue would amount to 959 million rupees.

The John Keells Holdings group currently holds 29.9 percent in Nations Trust Bank.

In line with Basel III, NTB has announced a rights issue of 4 convertible nonvoting shares per 23 ordinary voting shares held at 80 rupees per share.

The shares will be convertible to ordinary voting shares on a quarterly basis as stipulated by the Bank.

Meanwhile, the Central Bank has informed NTB that they permitted JKH to retain its current shareholdings in the bank till 31 December 2020 and reduce it to 15 percent thereafter.

The Central Bank has also required NTB to limit the voting rights of the JKH group to 10 percent with effect from 31 March 2018.

Chairman of JKH, Susantha Ratnayake said NTB will continue to be an associate company of the JKH group and the group’s external auditors have concurred with this position.