John Keells Holdings PLC (JKH) in a disclosure to the Colombo Stock Exchange announced that the Board resolved to offer to repurchase one out of every 20 ordinary voting shares at a price of Rs 160 per share, dates of which will be notified in due course.
The offer to repurchase shares amounting to a potential outlay of Rs. 11.10 billion reflects the view of the Board and management that the JKH share is currently not reflective of the value of the company and does not adequately represent the growth prospects of the company and therefore presents an opportunity for the company to repurchase its shares.
Further, the strength of the JKH Balance Sheet, along with existing cash reserves, is more than adequate to fund the Company’s planned investment pipeline while retaining its track record of dividend payout.
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