Investors who subscribed for the JKH rights issue based on financial feasibility of the their Waterfront Development project that included a casino licence. Casino licence has cancelled by the government and hence the project viability and return to the shareholders are significantly affected. Therefore JKH should return the rights issue money back to the shareholders who wants their money back.
Isn't it Fair?
Comments by Amba Research on JKH
"The Waterfront Development Project (WDP) to add LKR24 per share to JKH’s valuation: We have incorporated JKH’s proposed integrated resort project, which is under its 96.7% owned subsidiary Waterfront Properties, into our forecasts and valuation range. According to our base-case assumptions, we believe the WDP will add roughly LKR24 per share to JKH’s valuation. We believe JKH’s ability to attract a reputed gaming operator and obtain an anticipated 50% share of the profit after tax (PAT) from the gaming operations will be crucial for the success of this project."
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Last edited by Quibit on Mon Mar 09, 2015 12:43 pm; edited 4 times in total