Sri Lanka John Keells in share buyback

Sept 25, 2008 (LBO) –Sri Lanka’s John Keells Holdings (JKH) said it would give back 2.2 billion rupees to shareholders through a buy back of one share for every 25 held at 90 rupees.

The shares are being bought back above the market price. JKH closed at 86.25 rupees on Wednesday.

The firm sold rights shares at 140 rupees in the first quarter of 2007 but later also split its shares, giving an extra share for every 7 existing shares.

John Keells is buying back shares from all shareholders.

DIMO, a motor firm, bought back shares from one shareholder, Hayleys. The discriminatory share buy back upset minority shareholders.

Meanwhile John Keells directors said they would not be accepting the buy back offer.

Other shareholders could also apply to sell additional shares above their entitlement.