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USD 80 million private placement by JKH in fund-raising bid with ADB

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4 years ago

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Krishan Balendra, Chairman JKH

The Board of Directors of John Keellls Holdings has resolved to raise funds through a private placement for a maximum cumulative amount of the Sri Lanka rupee equivalent of USD 80 million to the Asian Development Bank through issuance of up to a maximum of 122,500,000 new ordinary shares of the company in two phases, Deputy Chairman/Group Finance Director Gihan Cooray said in a letter addressed to the Chief Regulatory Officer of the CSE Renuke Wijayawardhane.

Text of the letter:

The Board of Directors of John Keells Holdings PLC (“JKH”; the “Company”) resolved to raise funds through a private placement for a maximum cumulative amount of the Sri Lankan Rupee (LKR) equivalent of USD 80 million to Asian Development Bank (“ADB”) through the issuance of up to a maximum of 122,500,000 new ordinary shares of the Company in two phases, collectively the “Proposed Private Placement”, which will be a maximum post-issue dilution of 8.5 per cent.

The Proposed Private Placement would be for an upfront issue of ordinary shares (“Initial Placement Shares”) for an initial issue size of LKR equivalent of USD 50 million (“Phase 1”). At the time of issue of the Initial Placement Shares, the Company will also issue to ADB non-tradable/non-transferable options (“Options”) which will entitle ADB, at its option and discretion, to subscribe for additional new ordinary shares of the Company (“Option Shares”) within a period of 12 months from the date of subscription for the Initial Placement Shares, for an investment amount of up to the LKR equivalent of USD 30 million (“Phase 2”).

The issue of shares by way of the Proposed Private Placement is subject to the Securities Exchange Commission and the Colombo Stock Exchange (“CSE”) approving in principle the issue and listing of such shares, the Company obtaining shareholder approval at an Extraordinary General Meeting, approval of ADB’s Board of Directors and conformance with regulatory requirements, as applicable to the parties.

Salient features of the Proposed Private Placement are provided below.

Investor: Asian Development Bank

Phase 1:

▪ Issue Size LKR equivalent of USD 50 million

▪ Issue Price LKR 154.50 per share (the closing market price as at 19 November 2021).

The Issue Price is approximately a 10 per cent premium compared to the 90-day volume weighted average price of LKR 141.00 per share.

▪ Initial Placement Shares Number of shares arrived at by dividing the LKR equivalent of USD 50 million by the Issue Price of LKR 154.50 per share.

The current stated capital and number of ordinary shares in circulation of the Company is Rs. 63,121,732,310.83 and 1,319,776,451 ordinary shares, respectively.

Company No. PQ 14

The number of shares to be issued would depend on the exchange rate as at the date of subscription. For example, if the exchange rate of LKR 202.192/USD as of the date of this announcement remains at the time of subscription, this will amount to 65,434,304 Initial Placement Shares resulting in a post-issue dilution of 4.7% in Phase 1.

▪ Options The maximum number of Options to be issued will be in the ratio of 3 Options for every 5 Initial Placement Shares, subject to being within the threshold of the Total Placement Shares as stated below.

For example, if the Initial Placement Shares is 65,434,304, ADB will be entitled to 39,260,583 Options, which if exercised in full will result in a further post-issue dilution of 2.8 per cent, taking the total post-issue dilution to 7.3 per cent.

Phase 2 (in the event Options are exercised):

▪ Issue Size LKR equivalent of up to USD 30 million (subject to the maximum number of shares to be issued to ADB as indicated below)

▪ Option Exercise Price Volume weighted average price of the Company’s ordinary shares as quoted on the CSE during the 90 calendar days ending immediately prior to the option exercise date. The Option Exercise Price is subject to a minimum of LKR 165.00 per share and maximum of LKR 200.00 per share.

▪ Option Exercise Period The Options will be exercisable during a 3 month window post the completion of 9 months from the date of subscription of the Initial Placement Shares. This entitlement will expire 12 months from the date of subscription of the Initial Placement Shares.

▪ Option Shares Each Option will be convertible to one Option Share during the Exercise Period, subject to the Total Placement Shares being within the threshold, as stated below, which will not exceed a post-issue dilution cap of 8.5 per cent. The number of Option Shares will also be capped at a total ADB investment not exceeding USD 30 million which would be converted to LKR at the prevailing exchange rate at the time the Options are exercised.

Proposed Private Placement with both phases (in the event Options are fully exercised)

▪ Total Placement Shares: Up to a maximum of 122,500,000 new fully paid ordinary shares to be issued by the Company under Phase 1 and Phase 2, collectively.

Both Initial Placement Shares and Option Shares will rank pari passu with the existing ordinary shares of the Company.

▪ Maximum Post Issue Dilution: Up to a maximum dilution of 8.5 per cent post issue of ordinary shares under Phase 1 and Phase 2, collectively.

The flexibility to issue shares up to a maximum of 122,500,000 shares is due to the Issue Size being dependent on the exchange rate prevailing at the time of subscription under both phases, and the Option Exercise Price being variable (within the range of LKR 165.00 and LKR 200.00) at the time of exercise under Phase 2.

The proceeds from this transaction will be utilised for the purpose of corporate level balance sheet support towards funding its investments in the “Keells” Supermarket business which includes the long-term outlet expansion plan including construction and equipment, start-up expenses and the construction and equipping of the supporting logistics infrastructure to facilitate this.

Company No. PQ 14

Further, the Proposed Private Placement will afford the Group the flexibility and agility to fund its investments in an optimal manner, whilst providing additional support to the Group’s liquidity position, particularly in terms of providing further leeway to manage the foreign currency commitments of the Group’s landmark projects such as the ‘Cinnamon Life’ integrated resort and the West Container Terminal in the Port of Colombo. In addition, given ADB’s investment mandate pursuant to which private sector projects must have clear development impacts and positive externalities, particularly in environmental, social and governance (“ESG”) aspects, JKH will leverage on ADB’s technical expertise and advisory to enhance and further strengthen the Group’s existing ESG processes and frameworks to reach best in class benchmarks. The Group believes that partnering with an internationally reputed financial institution such as the ADB, particularly at this juncture of time, is a vote of confidence for JKH and the country.


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SriLankan Airlines records revenue increase with AI and ML-powered Revenue Management System

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10 hours ago

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2026/03/31

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SriLankan Airlines recorded a revenue increase following the implementation of its AI- and ML-powered Revenue Management System, a project that earned the Growth Catalyst Award at the Outperformer Customer Awards 2025 by PROS and the Silver Award in the AI and Data Science category at the National Project Management Excellence Awards 2025 by the Project Management Institute Sri Lanka Chapter.

SriLankan Airlines has recorded a revenue increase following the implementation of a next-generation, AI and Machine-Learning (ML) powered Origin and Destination (O&D) revenue management platform. The system enables dynamic pricing and smarter inventory optimisation, while delivering a superior passenger experience across all sales channels through real-time seat availability and predictive analytics.

Kshanaka Saparamadu, Head of Revenue Management at SriLankan Airlines, remarked, “Embracing the latest revenue management technology is a testament to our commitment to continuous innovation and digital transformation. With the introduction of PROS Revenue Management Advantage and Amadeus Revenue Availability and Active Valuation, we are not only refining our current processes but also positioning ourselves for long-term success in modern airline retailing, ensuring we stay ahead in a rapidly changing industry.”

Chamara Perera, Group Head of IT at SriLankan Airlines, added, “This transition to a dynamic, integrated revenue management system reflects our strategic focus on remaining agile in an increasingly competitive and fast-evolving airline industry. As the aviation sector undergoes rapid digital transformation, SriLankan Airlines is enhancing its ability to respond swiftly to market fluctuations and meet the evolving demands of today’s travelers.”

Powered by PROS’ AI-driven Revenue Management Advantage (RMA) and Amadeus Revenue Availability and Active Valuation (RAAV), the platform leverages AI algorithms and ML models to improve alignment of capacity and demand, optimise premium seat allocation and respond swiftly to market shifts. These capabilities deliver unmatched agility and scalability, boost yield and position SriLankan Airlines at the forefront of digital transformation in aviation.

Industry benchmarks show that O&D-based revenue optimisation models typically deliver a 3%-5% increase in passenger revenue, underscoring the new revenue management system as a key driver, among other strategic factors, to the 13% growth recorded by SriLankan Airlines during the first three quarters of the 2025-2026 financial year.

This initiative has not only enhanced SriLankan Airlines’ agility, scalability, and competitiveness in a dynamic global aviation market, but also strengthened collaboration between pricing, demand and flight analyst teams, earning two awards in the process. It was recognised with the Growth Catalyst Award at the Outperformer Customer Awards 2025 in Las Vegas by PROS, as well as the Silver Award in the AI and Data Science category at the National Project Management Excellence Awards 2025 in Colombo by the Project Management Institute Sri Lanka Chapter.

As SriLankan Airlines continues its modernisation journey, the new integrated revenue management platform will significantly improve SriLankan Airlines’ global market position, its ability to attract and retain high value connecting passengers, and competitiveness in the global aviation landscape.(SriLankan Airlines)

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CCC delegation completes prestigious International Trade Facilitation Programme

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10 hours ago

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2026/03/31

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A delegation of 30 professionals from the Ceylon Chamber of Commerce recently completed a specialised residential training programme on International Trade Facilitation at the Indian Institute of Foreign Trade (IIFT) in New Delhi.

Hosted by the Indian Institute of Foreign Trade, a premier institution established under India’s Ministry of Commerce and widely regarded as a leading centre of excellence in international trade education and research, the programme also included engagements with several of India’s most prominent trade and diplomacy institutions. These included the Directorate General of Foreign Trade (DGFT), the government authority responsible for shaping and implementing India’s foreign trade policy; the Sushma Swaraj Institute of Foreign Service, the country’s premier training institution for diplomats; the Federation of Indian Export Organisations (FIEO), the apex body representing India’s exporting community; and the Confederation of Indian Industry (CII), one of India’s most influential industry associations. Together, these engagements offered participants valuable insights into how policy, diplomacy, and industry interact in a robust manner to facilitate trade and economic progress.

Over nine days, participants explored key aspects of global commerce, including the international trading system, trade negotiations, economic intelligence, trade finance, and emerging issues such as AI, cyber risk, and digital transformation.

The programme offered valuable insights into the evolving dynamics of international trade and the systems that support it, while highlighting ways in which chambers of commerce can further leverage their existing role in supporting businesses navigate global markets, contributing to policy discussions, and strengthen the broader trade ecosystem.

The programme was designed and overseen by Dr. Rohit Mehtani, Dean at IIFT and a widely respected expert in international trade diplomacy and negotiations, whose academic work and advisory experience have contributed to international trade discourse.

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LOLC Life Assurance hosts MDRT Summit & Recognition Night 2026 honouring top performers

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10 hours ago

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2026/03/31

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Chandana L. Aluthgama Executive Director/Principal Officer LOLC Life Assurance Ltd // Jayantha Kalinga Chief Operating Officer LOLC Life Assurance Ltd.

LOLC Life Assurance recently hosted its MDRT Summit & Recognition Night 2026 at the Hilton Colombo Residences, celebrating its 2025 MDRT qualifiers while aspiring the team to achieve even greater milestones in the year ahead. The event brought together senior leadership and top performing advisors in a distinguished forum focused on recognising performance excellence, sharing industry insights, and setting the strategic direction for continued success.

In 2025, the Company produced 89 MDRT qualifiers, including six Court of the Table (COT) and two Top of the Table (TOT) achievers, along with one Lifetime MDRT member. Representing Agency and Bancassurance channels, these professionals demonstrate a strong commitment to delivering responsible financial guidance and long-term protection solutions to individuals and families across Sri Lanka.

The Million Dollar Round Table (MDRT) is globally recognised as the benchmark of excellence in the life insurance and financial services profession. Membership is reserved for individuals who meet rigorous production targets and uphold strict ethical standards. Achieving MDRT status is widely regarded as a mark of credibility, trust, and advisory distinction.

Commenting on the achievement, Mr. Chandana L. Aluthgama, Executive Director and Principal Officer of LOLC Life Assurance stated, “It is with great pride that we recognise our MDRT qualifiers for their dedication, discipline, and integrity, which set a benchmark of excellence for our advisory force and reflect the customer-first values that define LOLC Life Assurance. These achievers deserve recognition not only for meeting targets or selling policies, but also for safeguarding families, empowering individuals to build their legacies, and supporting financial independence, providing certainty and confidence in an unpredictable world. In acknowledging their exceptional contributions, I congratulate all our MDRT qualifiers and am confident they will continue to deliver meaningful financial protection while creating lasting value for our clients and communities.”

Further echoing this sentiment, Mr. Jayantha Kalinga, Chief Operating Officer of LOLC Life Assurance added, “This Summit not only celebrates the outstanding performance of our MDRT achievers in 2025 but also acknowledges the resilience, consistency, and customer dedication demonstrated by our teams throughout the year. As we move forward, we will continue to strengthen capabilities through structured development initiatives, advanced training tools, and robust operational support, empowering our advisors to serve clients with confidence and professionalism while further expanding our MDRT presence in the years ahead.”

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