John Keells Announces Major Rights Issue

John Keells Holdings PLC (JKH) has revealed a pivotal corporate strategy that includes a Rights Issue of Ordinary Shares, followed by a Share Sub-division.

This initiative aims to boost the company’s financial stability and ensure the successful execution of its ongoing and future projects.

The Board of Directors of JKH resolved to recommend to shareholders the issuance of 150,263,595 new Ordinary Shares. These shares will be offered on a 1-for-10 basis at Rs.160 per share, potentially raising Rs.24,042,175,200. The new shares will rank pari passu with the existing shares.

The proceeds from the Rights Issue are earmarked for the funding requirements of Waterfront Properties (Private) Limited (WPL), a subsidiary of JKH. WPL is the developer behind the ‘City of Dreams Sri Lanka integrated resort project, formerly known as ‘Cinnamon Life Integrated Resort’. The funds will address the higher-than-anticipated equity funding needs due to delays in the project’s cash flow generation, including postponed gaming operations.

JKH has secured a partnership with Melco Resorts & Entertainment Limited, a leading casino and integrated resort operator. Melco has committed approximately USD 125 million to fit out and equip the gaming space within the project. This partnership follows the publication of new casino licensing regulations, ensuring a structured and transparent framework.

The ‘Cinnamon Life’ hotel and its restaurants and banquet facilities are slated to open in October 2024. The gaming operations and retail mall will commence in phases, with overall completion expected by mid-2025.