John Keells Holdings will fully subscribe to its entitlement of the proposed rights issue of Nations Trust Bank (NTB) the company said in a stock market filing.
NTB expects to raise a total of Rs 3.21 billion through the rights issue, of which the JKH share of the rights issue would amount to Rs 959 million.
The shares will be convertible to ordinary voting shares on a quarterly basis as stipulated by the Bank. The John Keells Holdings group currently holds 29.9 percent in Nations Trust Bank. Central Bank has also informed NTB that they permitted JKH to retain its current shareholdings in the bank till December 31, 2020 and reduce it to 15 percent thereafter. The Central Bank has also required NTB to limit the voting rights of the JKH group to 10 percent with effect from March 31, 2018. The Monetary Board has also required NTB to limit the voting rights of the John Keells Group to 10 per cent with effect from March 31, 2018. NTB will continue to be an associate company of the JKH Group.
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