John Keells Holdings (JKH) makes Rs11bn stock buyback offer

Krishan Balendra - JKH Chairman/CEO designate

November 12, 2018 (LBO) – Shares of Colombo Stock Exchange market bellwether John Keells Holdings (JKH) were halted this morning pending announcement of a stock buyback.

The company announced that it is making buyback offer for 5% of its outstanding shares at a price of Rs160/share. The price is over a 10% premium to the previous trading sessions’ closing price, and over a 5% premium to its last reported net asset value per share.

The offer will be pro rata of 1 share per every 20 held, and will cost the company Rs11bn. It is expected that this buyback offer will clear out some foreign sellers as well as defend the company from a hostile takeover.

JKH as of September 30th had a net asset value of Rs151/share and currently has a market capitalisation of US$1.2bn.

Shares of JKH are expected to open sharply higher when the trading halt is lifted at 10:45am.

Keells buyback

(To be updated)