JOHN KEELLS HOLDINGS PLC (JKH.N0000)

il be very happy to see JKH owned by foreigners

btw right issue will make a good damage to ASI and it will shy away current retailers from JKH :p

To motivate the retailers & keep them in tact, split is the solution.
I am not sure it is legal or any implications to go with share split after rights issue process.

July 11, 2013 (LBO) - A mixed resort project in Sri Lanka's capital Colombo by listed John Keells group will involve investments up to 850 million US dollars, officials said.
Investment promotions minister Lakshaman Yapa Abeywardene, said Thursday the project has been approved by the state investment agency, the Board of Investment of Sri Lanka, which gives tax holidays.
JKH said in a statement Wednesday it is building an 'integrated resort' but made no mention of gaming, though the project is widely expected to have a casino.

Minister Abeywardene said the promotors could operate a casino in the premises if they wanted to but the government had not issued a license.


No information was provided on a specific foreign partner.
BOI director general Lakshman Jayaweera said the project expects to raise up to 300 million dollars from a number overseas investors through a rights issue.
The project firm Waterfront Properties (Pvt) Ltd, will get a 10 year tax holiday, dividend tax exemption for 11 years, customs duty exempted for capital imports, value added tax and airport and port development levy for five years.

Up to 20 employees to be exempt from pay as you earn tax for five years.

The project will have a luxury hotel, convention centre, entertainment facilities, a shopping mall, luxury condominiums, serviced apartments and office space.

http://www.lankabusinessonline.com/news/sri-lanka-john-keells-mixed-resort-investment-up-to-$850mn/2021753490

If above statement is true, They should go for right issues at least on two different occasions.

Above is roughly equal to Rs 80.00 per share.

smallville wrote:I dont see the logic of rights..

They have cash, at least to go for rights, do they eye for new investments?

They shouldn't do anything other than giving a good dividend as raptor pointed out.

I asked this in Feb cuz they didnt have anything important up in their sleeves to highlight them as I cud remember as the biggest conglomerate in SL  and out of no where now they're proposing the Govt. over $650 mil mega project, a luxry resort in their CCS's own land..

Geez.. If this fund thru rights, then I'm in a doubt of the 300-400 goal. As we've always seen that rights in smaller numbers are a failure while 20,30 rights for 1 share were hit the roofs.. Less rights are really good for the share price to hold on to a much manageable level. It doesn't bring the NAV to decrease in big numbers.. But our market?? Sigh!!!

But look at the good things here.. Its a BOI project - means there are tax concessions, may be for 5-10 years less or free tax period would be the one they're looking at. Then the job opportunities it creates, the foreign revenue it attracts, foreign investments that come in seeing a major project handled by the largest conglomerate in SL are the best things that our country and Govt can expect.

UKboy wrote:If above statement is true, They should go for right issues at least on two different occasions.

Above is roughly equal to Rs 80.00 per share.

I don't think JKH go for rights...

Sure there will be big change in JKH share price [over 30% Change - over Rs. 80/-] within a year time......

But this could be either.....
1. if Positive change - go over Rs. 330/- [i feel 30% chance to go in this way ]

2. if Negative change - go below Rs.175/- [i feel 70% chance to go in this way ]

no theories .......my own predictions!!!

But there is no doubt about future of JKH and performance ..... it need 3-4 four years to settle @high......

all these are...... due to this new investment 650USD!!!   

If they go for rights, will it be ended like Keels hotels ?

Then what will happen to 30b cash they have.
Right is a miracle from JKH.............

http://www.cse.lk/cmt/upload_cse_announcements/3541373596847_.pdf

Yep

What it says is a private placement for the new venture they are going to form. Not the JKH..........ne?

Redbulls wrote:http://www.cse.lk/cmt/upload_cse_announcements/3541373596847_.pdf

So they say their board has not thought about a rights issue... YET..

when will jkh go for rights

This is the TIME we should be INSIDE of JKH  

Even JKH goes for 1:10 right issue at 200 They can easily collect more than Rs. 15b.

Right is not sure for me even it does, It will be a nice Right issue like 1:15 or 1:10 for sure.

May be 1:5 at 100 or 150. Then the right will Push the prices up for sure.
All above are purely hypothetical scenarios

Arena wrote:Even JKH goes for 1:10 right issue at 200 They can easily collect more than Rs. 15b.

Right is not sure for me even it does, It will be a nice Right issue like 1:15 or 1:10 for sure.

May be 1:5 at 100 or 150. Then the right will Push the prices up for sure.
All above are purely hypothetical scenarios

Is it enougt to collect RS. 15b.
they nees us $ 850million
Rs =850million X 130
Rs.=110500 million =Rs. 110.5billion total requirment
say they want 1/3 from right issue, then requirment 110.5/3= Rs. 36.8 b
If 1/2 from right issue, then requirment 110.5 = 55.25 b
If I am wrong please correct me

100% wrong. At this movement they have around 30b cash as short term investments. And already they announced there will be a share issue for US$ 300m from foreign parties for the new venture. So the cash requirement is very low.

They will get hell of lot money from their on going property projects ( Gregory Road Apartment 5b , Town Hall 3 tower building etc etc)..................And the new project don't need cash at once.

Apart from every thing JKH is not a one party controlled entity to go for crazy right issues. 1:10 or 1:5 will be the maximum. Or may be 1:20 ..............................I think it is better to wait for them to decide.

What would be the most likely way of JKH raising the money for the proposed project?

http://forum.srilankaequity.com/t25989-jkh-should-go-for-rights?highlight=rights

Is right issue on the cards? may be they will find a foreign partner?

Other than rights issue, right issue would give negative impact on cse ne, won't they be able to come up with other means? like borrowing form foreign institutions and the option to convert the money into equity etc...

In the above link there are couple of other possibilities were mentioned no?

Redbulls wrote:In the above link there are couple of other possibilities were mentioned no?

mm....i just thought it would be better if all possible ways are put up at one thread

ccsentha wrote:

Redbulls wrote:In the above link there are couple of other possibilities were mentioned no?

mm....i just thought it would be better if all possible ways are put up at one thread

Do you mean mergeing the two threads?
Good idea.

Anyway I hope they'll form a new company where JKH,JKL,CCS and other JKH related companies hold 75+percent shares and go for IPO or private placement.

Redbulls wrote:

ccsentha wrote:

Redbulls wrote:In the above link there are couple of other possibilities were mentioned no?

mm....i just thought it would be better if all possible ways are put up at one thread

Do you mean mergeing the two threads?
Good idea.

Anyway I hope they'll form a new company where JKH,JKL,CCS and other JKH related companies hold 75+percent shares and go for IPO or private placement.

that would be good so that there are no duplicate posts...

but if they are intend on doing that then they would have formed a company and then via that they would have put up the proposal, but as it stands the proposal has been put up for approval, so i'm finding it difficult imagine JKH forming a new company for the project.

ccsentha wrote:

Redbulls wrote:

ccsentha wrote:

Redbulls wrote:In the above link there are couple of other possibilities were mentioned no?

mm....i just thought it would be better if all possible ways are put up at one thread

Do you mean mergeing the two threads?
Good idea.

Anyway I hope they'll form a new company where JKH,JKL,CCS and other JKH related companies hold 75+percent shares and go for IPO or private placement.

that would be good so that there are no duplicate posts...

but if they are intend on doing that then they would have formed a company and then via that they would have put up the proposal, but as it stands the proposal has been put up for approval, so i'm finding it difficult imagine JKH forming a new company for the project.

According to their notification at CSE, the new company will be called as 'The Project'.
http://www.cse.lk/cmt/uploadAnnounceFiles/4741373455000_508.pdf

Redbulls wrote:

ccsentha wrote:

Redbulls wrote:

ccsentha wrote:

Redbulls wrote:In the above link there are couple of other possibilities were mentioned no?

mm....i just thought it would be better if all possible ways are put up at one thread

Do you mean mergeing the two threads?
Good idea.

Anyway I hope they'll form a new company where JKH,JKL,CCS and other JKH related companies hold 75+percent shares and go for IPO or private placement.

that would be good so that there are no duplicate posts...

but if they are intend on doing that then they would have formed a company and then via that they would have put up the proposal, but as it stands the proposal has been put up for approval, so i'm finding it difficult imagine JKH forming a new company for the project.

According to their notification at CSE, the new company will be called as 'The Project'.
http://www.cse.lk/cmt/uploadAnnounceFiles/4741373455000_508.pdf

According to that announcement it seems the project company will be WPL(Private)

ccsentha wrote:

Redbulls wrote:

ccsentha wrote:

Redbulls wrote:

ccsentha wrote:

Redbulls wrote:In the above link there are couple of other possibilities were mentioned no?

mm....i just thought it would be better if all possible ways are put up at one thread

Do you mean mergeing the two threads?
Good idea.

Anyway I hope they'll form a new company where JKH,JKL,CCS and other JKH related companies hold 75+percent shares and go for IPO or private placement.

that would be good so that there are no duplicate posts...

but if they are intend on doing that then they would have formed a company and then via that they would have put up the proposal, but as it stands the proposal has been put up for approval, so i'm finding it difficult imagine JKH forming a new company for the project.

According to their notification at CSE, the new company will be called as 'The Project'.
http://www.cse.lk/cmt/uploadAnnounceFiles/4741373455000_508.pdf

According to that announcement it seems the project company will be WPL(Private)

For the time being it will be private, it will go public by 2016 or after(I hope).
Investing in Project company sometimes JKH,JKL,CCS may go for rights.(not sure but I strongly suspect)
Read JKH history sheet, in the past they went for rights even private placement when they started to invest in new projects.

This could be a main reason why we had seen some selling from Captains earlier this year.

UKboy wrote:This could be a main reason why we had seen some selling from Captains earlier this year.

Sadly the privileged have info.

Wasn;t JKH going to do a private placement from abroad. IFthey knew about this right issue, they should have announced it when it ran r=to Rs 300 was higher.

They could have announced a better price with lesser sharesand also save the market this headache. What a time to announce the market.