May 24, 2016 (LBO) – Sri Lanka’s diversified John Keells Holdings has decided to subdivide ordinary shares of the company while making an adjustment to its warrants.
The company said in a stock exchange filing, the directors have recommended a share subdivision where by every seven existing ordinary shares will be subdivided to eight ordinary shares.
Accordingly, number of ordinary shares as well as the number of warrants in issue will be increased and the purchase price of a warrant will be reduced to 149.29 rupees from 170.62 rupees.
John Keells Holdings said the number and exercise price of employee share options in issue will also be adjusted proportionately.
The proposed subdivision is subjected to shareholder approval at an extraordinary general meeting.
A share subdivision is generally the opposite of a consolidation with the number of shares in issue being increased by a set ratio.
In turn the nominal value of the shares and the market price per share of the shares will decrease by the same ratio.