Malaysia's Sovereign Wealth Fund Khazanah Buys 8pct of Sri Lanka's Keells Holdings for $ 114mn

16th March 2012, www.lankabusinessonline.com

Malaysia's Khazanah Nasional Berhad, a sovereign wealth fund has bought an 8.8 percent stake in Sri Lanka's John Keells Holdings in a deal valued at over 14 billion rupees (114 million US dollars), officials said.

Khazanah had bought 74 million shares at 194 with Sri Lanka's Employee's Provident Fund, a state-managed fund of private sector workers' retirement money, among key sellers.

"It is a very positive signal for John Keells and it adds to our very stable long term shareholder base," JKH deputy chairman Ajit Gunewardene said.

Sharhan Muhseen, director investment banking of Bank of America Merrill Lynch, which arranged the purchase, was in Sri Lanka to wrap up the deal, sources said.

The EPF sold 71 million shares at 194 rupees, bringing a capital gain to the fund, Kalyani Gunatilleke, superintendent of the Employees provident fund said.

"It has shown the confidence foreign investors have in the economy," she said.

"It has brought liquidity to the stock exchange and boosted transactions. It has brought foreign exchange into the country."

Central Bank governor Nivard Cabraal said the deal was part of the several into equity and bond markets that will help stabilize a currency peg. The rupee opened stronger Friday below 124 to the US dollar, from a close of 125.00/25 a day earlier.

"We have seen some fairly strong inflows and that trend seems to be continuing," he said.

"All these will stabilize the currency as we have consistently maintained."

Khazannah Nasional manages over 36 billion US dollars in assets and owns parts of Telekom Malaysia, Axiata and other state enterprises in Malaysia, as well as overseas investments.

John Keells Holdings has interests in ports and shipping, leisure, financial services, commodity broking and food processing.

Its leisure interests include hotels in the Maldives. JKH had assets of 119 billion rupees by end 2011.

The group posted profits of 5.6 billion rupees in the nine months to 2011 unchanged from a year earlier giving earnings of 6.70 per share.

Related Info :

• John Keells for a Mega Development on Glennie Street & Ceylon Cold Stores Land

• John Keells Holdings Posts Highest Ever Profit After Tax of Rs9.06bn with a Revenue of Rs60.5bn
 
• Sri Lanka John Keells Raised Stake in Union Assurance to 95.6pct

John Keells for a Mega Development on Glennie Street & Ceylon Cold Stores Land

21st January 2012, www.island.lk

John Keells Holdings (JKH) is currently planning a mega development encompassing land at its Glennie Street headquarters as well as adjoining Ceylon Cold Stores property, a research report from IIFL Institutional Equities said.

"JKH is currently exploring possibilities of a mega integrated development at an estimated US$ 750 million on its Glennie Street headquarters land," the report said.

It went on to say that this project would comprise two five-star hotels, malls, residential towers, conference centers and office complex spanning over an estimated 3.8 million sq. ft.

"The group’s vast real estate portfolio with large contiguous blocks of land in the heart of Colombo provides an ideal opportunity for such projects," the report said.

JKH itself was tight lipped about its plans on this mega development with senior company officials merely saying that they are examining various possibilities and working in parallel on matters including designs, approvals and numerous other formalities that must precede a development of this nature.

"The intention is there but delivery is another matter," a senior company official said yesterday. "We are making no formal announcement until everything is in place and we will do so when we are in a position to definitely state that we will go ahead with such a project," he explained.

The company declined to place any timeframe for the commencement and completion of the project if it takes off.

The IIFL report says that JKH is "the largest non-government land owner in Colombo" with 25 acres of Colombo land at prime locations in the city.

A significant portion of this city land portfolio is currently unutilized and presents immense potential for unlocking value, it said.

It noted that Shangri-La recently set a new benchmark for property prices in Colombo paying US$ 125 million for 10 acres at Galle Face and at that benchmark, JKH’s Colombo land value will almost equal a fourth of the conglomerate’s current market capitalization.

The report further noted that JKH also has 120 acres outside Colombo excluding hotel lands and these can be utilized to develop further leisure assets.

Although the JKH share has been falling in recent weeks and closed at Rs. 163.30 on Friday. The IIFL report gives a strong ‘buy’ recommendation on the counter saying that "the stock offers 39% upside" in a 12-month horizon. It has placed a target price of Rs.239 for the share one year down the road.

The report says that JKH is an "ideal play" for Sri Lanka’s economic revival given its presence in port operations, leisure, consumer food and retail and property.

"A track record of competent management and a strong balance sheet would help JKH sustain and strengthen its leadership position across sectors,’’ the report said noting that it was the largest and among the most liquid stock quoted on the Colombo Stock Exchange.

It also said that JKH has a cash chest of Rs.53 million "to exploit emerging opportunities."


John Keells Holdings - the Big Picture : IIIFL Institutional Equities

Related Info :

• John Keells Holdings Posts Highest Ever Profit After Tax of Rs9.06bn with a Revenue of Rs60.5bn

• John Keells OnThree20 Luxury Apartment Complex at Union Place Colombo to Start Soon

Unprecedented Growth in Sri Lanka Supermarket Trade in Coming Years – Research Report

03rd January 2012, www.news360.lk

Sri Lanka’s supermarket trade is expected to see an unprecedented growth within the next few years, backed by increasing per capita income, an increase in the work force and the changing consumption patterns, says a newly released equity research report.

According to the report, the spread of supermarket trade in the country as of now stands at just 15%.



The report compiled by Bartleet Religare Securities says, with the end of the war, the three leading supermarket chains in the country, namely Cargills, Keells and Arpico have started expanding aggressively while investing heavily in to this segment.

The report also observes the demand for supermarkets is also backed by convenience and late shopping hours it offers to the customers.

“Some individuals are also attracted to processed food items found in supermarkets which are much easier to prepare”, the report reveals.

The study has found that Supermarkets are also at an advantage, as they have a higher bargaining power over suppliers and are in a better position to offer products at competitive prices due to economies of scale.

However, despite the growth potential, the report says that most supermarkets operate on thin margins thus banking on higher volumes to cover operational costs while at the same time focusing on cost effective strategies.

“ Owing to the high competition in the industry; various promotions, loyalty schemes and advertising has to be carried out on a regular basis to retain the respective clientele as switching cost to customers are minimal”, added the BRS report.

According to BRS, there are 516 supermarkets being operated in the country which can be categorized as supermarkets, hypermarkets and convenience stores.

Cargills operates 177 supermarkets and the state owned Sathosa which offers products at a subsidized rate operates a convenience store network of 250 stores.

Keells has 48 supermarkets being converted to a hyper market while Arpico operates 13 hyper markets.

Susantha Ratnayake Elected as the Chairman of the Ceylon Chamber of Commerce

29th July 2011, www.dailynews.lk

John Keells and the Sri Lanka Tea Board Chairman Susantha Ratnayake was elected as the Chairman of the Ceylon Chamber of Commerce at the 172nd annual general meeting held yesterday. He took over from Dr Anura Ekanayake.

Lion Breweries Director and CEO Suresh Shah was appointed as Deputy Chairman and CIC Managing Director and CEO Samantha Ranatunga was elected Deputy Vice Chairman.

Ratnayake takes over as the 21st Sri Lankan Chairman of the Ceylon Chamber of Commerce. In the 172 year history of the Chamber, the early Chairmen were from amongst the British-origin businessmen in Sri Lanka, until Mallory Wijesinghe took over in 1965.

Several young industry leaders make their appearance in the new committee for 2011/2012. Among them are Husein Essufally (CEO, Hemas Holdings PLC), Sriyan De S Wijeyeratne (Country Manager, Microsoft Sri Lanka (Pvt) Ltd), Vidyani Hettigoda (Director, Hettigoda Group of Companies), Anushman Rajaratnam (Managing Director, Lankem Ceylon PLC), Amanda Weerasinghe (Managing Director, Almar Trading Co. (Pvt) Ltd, Vish Govindasamy (Group Managing Director, Watawala Plantations PLC) Ravi Dias (Executive Director and Chief Operating Officer, Commercial Bank of Ceylon), Manjula de Silva (Managing Director, HNB Assurance Ltd) and Krishan Balendran (President -Corporate Finance, John Keells Holdings PLC).

World Bank Country Director for Sri Lanka and Maldives, Diarietou Gaye was the chief guest.

Related Info :

• Ceylon Chamber of Commerce, CCC Completes 172 Years. The First Chamber Established in Sri Lanka

• Ceylon Chamber of Commerce Launches Directory of Members 2011-2012, Contact Information of All Main Sectors

• Sri Lanka in Brief - A Handy Guide by Ceylon Chamber of Commerce

John Keells Holdings Posts Highest Ever Profit After Tax of Rs9.06bn with a Revenue of Rs60.5bn

21st May 2011, www.island.lk

John Keells Holdings (JKH), the diversified conglomerate, has posted the highest ever profit after-tax in the company’s history for the financial year ended March 31,2011 with a group revenue of Rs.60.5 billion, up 26% from a year earlier, and an after-tax profit of Rs.9.06 billion, up 63% from the previous year.

The group’s pre-tax profit was Rs.10.6 billion, with JKH and Dialog Axiata being the only two companies to reach this mark up to now. Analysts said that it was possible that the Carsons group too would achieve this benchmark in the financial year ended March 31, 2011.

In results filed with the Colombo Stock Exchange on Friday, JKH said that Rs.8.25 billion of these earnings translating to earnings per share of Rs.13.24, was attributable to equity holders of the parent.

JKH also announced to the CSE that it would be paying a third interim dividend of Re.1 per share on top of two interim dividends each of Re.1 per share already paid to give shareholders a return of Rs.3 per share for the year under review.

Asked why the company was not increasing its dividend payout in the context of the superior performance, a senior official company said that several projects, many of them with long gestation periods, are being looked at and the directors thought it best that the previous year’s dividend level is maintained.

``Otherwise you raise shareholder expectations that may be difficult to satisfy,’’ he said. ``We had that experience when we paid a special dividend of Rs. 2 per share a couple of years ago and many shareholders believed this would continue.’’

He said that although the dividend level was the same as in the previous year, the company was doing a share sub-division under which every three shares would be sub-divided into four.

"Once the sub-division is done, our share price would necessarily go down but shareholders, in terms of the share price of their increased shareholding, will have a substantial capital appreciation convertible to cash if they so desire," he said.

The Employees Provident Fund has increased its stake in JKH from 5.7% at the end of last year to 7.1% as at March 31, 2011 while the Insurance Corporation too owns 1.8%, same as what it held at the end of last year.

Analysts did not discount the possibility of the state sector seeking a place on the JKH board should the collective holding reach a substantial level of around 15%.

Mr. S.E. Captain remains the biggest individual shareholder of JKH with his personal holding together with those of connected parties topping 20%.

In the year under review, transportation continued to be the biggest cash cow for the group posting a pre-tax profit of Rs.3 billion for the year, up from Rs.2.3 billion a year earlier.

Leisure contributed Rs.2.5 billion, up from the previous year’s Rs.1 billion, financial services Rs.1.3 billion, up from Rs.868 million, property Rs.831 million, up from Rs.378 million, consumer foods and retail Rs.579 million, up from Rs.288 million and IT Rs.114.4 million, up from Rs.13.6 million a year earlier.

Related Info :

• Sri Lanka John Keells Raised Stake in Union Assurance to 95.6pct

• Business Today Top 20 Sri Lankan Companies 2009-2010. JKH, HNB & BUKI Make Top 3. Sri Lanka an Exciting Place to Invest in 2011 - Hari Selvanathan

• John Keells OnThree20 Luxury Apartment Complex at Union Place Colombo to Start Soon

Sri Lanka John Keells Raised Stake in Union Assurance to 95.6pct

18th March 2011, www.lankabusinessonline.com

Sri Lanka's John Keells Holdings has raised its stake in Union Assurance, an insurer to 95.6 percent from 80.8 percent by purchasing 5.5 million shares at 150 rupees.

"We have confidence in insurance business and financial services in general and Union Assurance in particular," JKH deputy chairman Ajit Gunawardena said.

The seller is believed to be Sri Lanka's Aviva Insurance unit.

JKH has steadily raised its stake in Union Assurance and had bought out founding partners Carsons group earlier.










Related Info :

• Business Today Top 20 Sri Lankan Companies 2009-2010. JKH, HNB & BUKI Make Top 3. Sri Lanka an Exciting Place to Invest in 2011 - Hari Selvanathan

• John Keells Group Earns Record Profit of Rs 5.2bn After Tax

• John Keells OnThree20 Luxury Apartment Complex at Union Place Colombo to Start Soon

• Sri Lanka's Keells Invests Rs 450mn in Star Class Chaaya Blu Hotel in Trinco

Ceylon Tea is Set to Set 3 Records in 2010 : Highest Production, Export Earnings & Net Sale Average

17th December 2010, www.news360.lk, By Prasanna C Rodrigo

A leading Tea Broker says, Sri Lanka’s tea industry is set to achieve 3 records during this year.

According to the CEO of John Keells Tea Broking Arm Sudath Munasinghe, the local tea industry will achieve the highest production levels, the highest export earnings and also the highest “net sale average” during the year 2010.

Munasinghe said, “We expect export earnings to reach US$ 1.5 billion in 2010”.

He also predicts, that the total tea production which up to November stood at 302 million kilograms, will reach a record figure of 324 million kilograms at the end of this year.

The previous high was 318 million kilograms achieved in year 2008.

According to Munasinghe, the “net sale average” for Ceylon tea is also expected to reach a record figure during this year.

He said, as of 7th December, the “Net sale average” of Ceylon tea sold at the Colombo Auction stands at Rs. 369.52 per kilogram.

The previous highest “net sale average” achieved was in 2009 recording a sum of Rs. 362.02 per kilogram.

Reasons for the records

The CEO of the John Keells tea broking arm attributes the excellent global market conditions propelled by the increase demand for tea as one reason for this growth.

He said Ceylon tea has got a better price than the Kenyan tea during 2010.

Apart from that good weather and the fertilizer subsidy for tea small holders too has helped the industries growth in 2010, added Munasinghe.

John Keells OnThree20 Luxury Apartment Complex at Union Place Colombo to Start Soon

30th October 2010, www.island.lk

Word leaked out almost three weeks ago that the John Keells group was planning to launch its third residential apartment complex at Union Place, Colombo 2 following the success of two other projects on the grounds of the Cinnamon Grand Hotel.

"There was a clamor of interest and people came round and put their names down," a senior JKH executive said yesterday. "The pricing is very attractive." The new complex which the developers describe as "mega luxury" is estimated to cost over US$ 65 million with its 475 apartments being priced from between Rs.14 million for a two-bed roomed unit at the lower levels to Rs.37 million for a three-bed roomed apartment at the highest level.

JKH which signed an agreement last week with the BOI for this project named "OnThree20" said construction will begin in April 2011 and is scheduled for completion by the end of 2014.

The Emperor, the second residential complex that is now being constructed on the Cinnamon Grand property, is due for completion in 2012. Apartments there have almost been fully sold.

As buyers put up the cash for their apartments while building work proceed, the cost of construction is not a drain on the developer’s resources.

The Union Place property on which the newest project will rise was acquired by JKH in the 1980s at a fraction of today’s value and has been held by the company over a long period of time.

The headquarters of Singer (Sri Lanka) is located in the buildings standing on the site which will most likely be demolished.

Related Info:
Sri Lanka JKH Plans Rs 6.5bn Condo Project in Colombo's Union Place

Sri Lanka JKH Plans Rs 6.5bn Condo Project in Colombo's Union Place

19th October 2010, www.lankabusinessonline.com

Sri Lanka's John Keells Holdings is planning a 6.5 billion rupee condominium project in Colombo's Union Place which will be built by a newly incorporated company in the group, top officials said.

"We are looking at a condominium in Union Place," deputy chairman Ajit Gunewardene said.

"It is certainly something we are working on."

The project will be on group property in Union Place where the head office of Singer Sri Lanka are located.

At one time JKH was also planning a project across the street with Associated Motorways, which is now owned by the Dubai-based Al Futaim group.

Suresh Rajendra, president of JKH's property sector, said the company is awaiting government approvals for the project.

The planned three-tower condominium block will cost 6.5 billion rupees.

It will have 470 units with construction expected to start at the end of the first quarter of next year.

"The response from the market has been good," Rajendra told LBO.

The company will start marketing the apartments as soon as official approvals are obtained.

Apartments could go up 35 million rupees at the top end.

Sri Lanka's Asian Hotels and Properties Double Qtr Profits

29th July 2010, www.bloomberg.com

Asian Hotels and Properties Plc., a Colombo-based hotel and property management company, posted profit of 188 million rupees ($1.7 million) in the first quarter ended June 30, compared with 54 million rupees a year earlier, according to a statement to the Colombo Stock Exchange.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

Volumes Up at Colombo Port Private Terminal, SAGT Run by John Keells

08th June 2010, www.lankabusinessonline.com

Cargo volumes at a Colombo port private terminal run by an associate firm of John Keells Holdings surged 22.3 percent in May to 175,514 twenty-foot equivalent container units (TEUs) from a year ago, latest data shows.

Container flows at the terminal as well as the port's other terminals which are owned by government have been rising on the back of a recovery in trade with the end of global recession.

Container volumes at South Asia Gateway Terminals, a big contributor to JKH profits, are up 30.4 percent to 851,435 TEUs up to May this year from a year ago.

The containers handled in May were the second highest-ever monthly volumes at the private terminal, analysts said.

SAGT handled a record 181,991 containers in March 2010 as transshipment traffic, which accounts for two-thirds of the terminal's business, rose sharply with the recovery in regional trade.

SAGT is part of the transport business of the JKH conglomerate which has been making an increasing contribution to group profits in recent years.

John Keells Group Earns Record Profit of Rs 5.2bn After Tax

01st June 2010, www.dailynews.lk

John Keells Holdings Group revenue increased by 17 percent to Rs 47.98 billion for the year 2009/10 ended March 31, 2010. Group profit before tax (PBT) increased by 4 percent to Rs 6.54 billion. Group profit after tax (PAT) attributable to equity holders increased by 10 percent to Rs 5.20 billion.

Cash EPS increased by 54 percent to Rs 12.04.

Net cash flow from operating activities increased by 136 percent to Rs 9.79 billion. Return on equity was 10.9 percent compared to 10.6 percent in the previous year the JKH Chairman Susantha Ratnayake said.

Transportation remained the main contributor to the Group’s after tax profits, contributing 41 percent to the Group’s profitability with a PAT of Rs 2.28 billion, an increase of 38 percent. The industry group contributed 20 percent to the Group’s revenue.

The group’s profits were mainly driven by the operations of South Asia Gateway Terminals (SAGT), at the Colombo port, where the throughput grew 7 percent year on year to 1.88 million TEUs primarily due to the significant growth in demand from key customers.

Leisure recorded a significantly improved performance with tourist arrivals increasing consequent to the end of hostilities.

Overall, the Leisure industry group contributed 24 percent to the Group’s revenue and 18 percent of the Group’s profitability with a PAT of Rs 973 million, this being a sevenfold increase over 2008/09 [2008/09: Rs 128 million].

In anticipation of a rejuvenated Leisure industry in Sri Lanka, a total of over Rs. 6 billion has already been invested and/or committed by the Group.

The Property industry group contributed 3 percent to the Group’s revenue and 6 percent to the Group’s after tax profitability with Rs 342 million for the year, a 30 percent decline [2008/09: Rs 486 million].

There has been renewed interest in apartments in recent months and we are currently reviewing the plans that were shelved when demand was sluggish and are revisiting our strategy to develop the Group’s substantial land bank in Colombo, Ratnayake said.

The Consumer Foods and Retail industry group contributed 33 percent to the Group’s revenue and 2 percent to the Group’s after tax profitability with Rs 88 million, this being a 28 percent decline compared to the previous year.

The Beverages and Frozen Confectionary businesses recorded a PAT increase of 15 percent due to increased volumes in the North and the East and the Retail business.

Financial Services reported a PAT of Rs 530 million, an increase of 56 percent compared to last year.

Information Technology recorded a PAT of Rs 18 million in the current year compared to the loss of Rs 167 million in the previous financial year.

The industry group contributed 3 percent to the Group’s revenue and 0.3 percent to the Group’s after tax profitability.

Plantation Services, which is included under ‘Other’ in our segment report, recorded a PAT of Rs 275 million which is a 5 percent contribution to the Group’s profitability.

The PAT increase of 56 percent was mainly a result of higher tea and rubber prices in the international markets.

“We also acquired a stake of 24.6 percent in Central Hospital (Private) Limited through John Keells Capital. Overall, the ‘Other’ segment contributed 6 percent to Group revenue and 24 percent to the Group’s profitability, Chairman Ratnayake said.

Image: JKH Chairman, Susantha Ratnayake

Sri Lanka's John Keells Upgrades Habarana Cinnamon Lodge Hotel at $2.5mn

03rd May 2010, www.lankabusinessonline.com

Habarana Lodge has signed a deal with the Board of Investment to invest 2.5 million US dollars to re-furbish and upgrade its hotel in north-central Sri Lanka, the investment promotion agency said.
The 140-room Cinnamon Lodge Hotel at Habarana, part of the John Keells group hotel chain, will be upgraded to a five-star rated hotel, the BOI statement said.

"The hotel is expected to attract more guests with the boom in the tourism industry."

BOI approval for projects enables companies to be entitled to incentives like tax breaks and duty free import of equipment and raw materials.

Sri Lanka's tourist industry has revived with a sharp upturn in arrivals following the end of the 30-year ethnic war last May.

The BOI statement also said it signed another deal with Emmaus Industries for a venture to manufacture ladies footwear for the export market to be supplied to well known brands in the European Union and USA.

The joint venture between Italy and Sri Lanka represents an investment of over 650,000 US dollars, the BOI said.

The manufacturing plant established in the industrial estate in Dankotuwa, north of Colombo, is expected to provide employment for a work force of 220.

Sri Lanka Private Container Terminal Volumes Up by 33pct. South Asia Gateway Terminals Handled 162,890 TEUs

11th February 2010, www.lankabusinessonline.com

Cargo volumes at a Colombo port private container terminal in which John Keells Holdings has a big stake rose sharply in January, albeit from a low base the year before as trade recovers from recession.

South Asia Gateway Terminals handled 162,890 TEUs (Twenty-foot Equivalent container Units) in January 2010, data released by the firm showed.

The container volume was up 33 percent from the same month the previous year when trade volumes had slumped owing to recession.

It was SAGT’s second highest-ever monthly volumes, according to analysts.

The rise in container volumes indicates the recovery in trade was gathering momentum, analysts said.

SAGT, in which John Keells Holdings has a 42.2 percent stake, handled a record high volume of containers in 2009 despite the global economic slump which reduced shipping volumes worldwide.

In 2009 SAGT’s volumes were up 1.4 percent to 1,749,796 TEUs from the previous year and it also took market share from the government-owned terminals.

In December 2009, SAGT’s container volumes rose 26.5 percent to 155,691 TEUs from a year earlier.

However, 76 percent of SAGT’s container volumes consist of transshipment traffic on which profit margins are lower.

Container volumes at the government-owned Jaya Container Terminal are also recovering as trade flows picked up with global recession coming to an end.

The Sri Lanka Ports Authority said the JCT handled a total of 153,317 20-foot containers in December 2009, up 12.5 percent from the same month a year ago.

JKH Expands Leisure Sector. Sri Lanka’s Biggest Conglomerate Shows Profit Gains

31st January 2010, www.sundaytimes.lk

John Keells Holdings (JKH), Sri Lanka’s biggest conglomerate, showed profit gains in several sectors including leisure, transportation, financial services and information technology for the third quarter ended December 31, 2009, including plans to expand in the leisure sector with new projects and refurbishing existing hotels.

According to the interim report released this week, net profit for the period under review was Rs.863 million, a 21% decrease compared to the Rs.1.09 billion in the corresponding period of the previous year. Similarly, the net profit for the nine months ended 31 December 2009 stood at Rs.2.83 billion, a 29% fall compared to Rs.3.96 billion in the corresponding period of 2008 which included the capital profit of Rs.1.21 billion on the sale of the investment in Associated Motorways (AMW).

The consolidated income statement shows that revenue increased by 9% in the nine months ended 31 December 2009 to Rs.34 billion from Rs.31.1 billion the previous year. Gross profit also increased by 9% to Rs.7.3 billion from Rs.6.7 billion the previous year.

Other operating income increased by 55% during the same period to Rs.3.2 billion but there were increases in distribution and administrative expenses as well as other operating expenses.

In a statement, JKH Chairman Susantha Ratnayake said the improved performance in the third quarter under review is only an early indication of the potential the Group offers in a new environment. The leisure sector saw a significant improvement in the third quarter compared to the corresponding period of the previous year with profits before tax increasing by 174% to Rs.333 million from Rs.122 million in 2008.

Mr. Ratnayake said this improvement in performance was mainly from the Sri Lankan city hotels and resort hotels. During the quarter, JKH acquired four acres of land next to the former Hotel Bayroo which gives a contiguous block of 10 acres on the prime Beruwala beach front to construct a 190 room hotel. Mr. Ratnayake added that the South Wing of the Cinnamon Grand Hotel in Colombo, comprising of 254 rooms will be refurbished during the next few months.

Janus Buys Stake of JKH of Sri Lanka. 12.23 pct of John Keells Holdings Bought after the Exit of Raj Rajaratnam and His Galleon Asset Management Group

15th January 2010, www.lankabusinessonline.com

Janus Capital Management, a US based fund said they had bought 12.23 percent of Sri Lanka's John Keells Holdings, shortly after Raj Rajaratnam and his Galleon asset management group started to sell out of the firm.

Janus Capital said they were holding the JKH stake on behalf of clients and had no economic interest in the share in the form of either dividends or eventual sale proceeds.

But the firm had the right to hold of shares held for clients.
Janus said it had 74.9 million shares or 12.23 percent out of a total of 613.1 million shares.

Aureos South Asia Fund Invests in Central Hospital, Sri Lanka

16th December 2009, www.sundaytimes.lk

Aureos South Asia Fund LLC said on Wednesday it has invested Rs 366 million (US$3.2 million) for a 10% stake in the Asiri Group-controlled, Central Hospital (Pvt) Ltd.

At the same time John Keells Holdngs said it was also taking a more than 20 % stake in the same company.

The fund managed by Aureos Capital, a leading private equity fund manager focusing on investments in mid-cap enterprises in emerging markets worldwide. It focuses on investments in India, Sri Lanka and Bangladesh.

CSE - Trading Thursday: Stocks Gain and Rose above 3,000-point Mark on the Benchmark Index

03rd December 2009, www.lankabusinessonline.com

Sri Lankan stocks extended gains and rose above the 3,000-point mark on the benchmark index Thursday boosted by high volume transactions on Hatton National Bank (HNB) and John Keells Holdings (JKH), brokers said.

The All Share Price Index closed at 3,004.61 up 1.78 percent (52.45 points) while the Milanka Price Index of more liquid stocks closed at 3,415.18, up 1.35 percent (45.50 points).

Turnover was pushed up to 2.57 billion rupees by the JKH and HNB deals, according to provisional Colombo Stock Exchange statistics.

"The market reacted positively mainly due to the confidence created by the large scale investors who entered the market during the week," Thakshila Hulangamuwa, vice president at stock brokering firm Asha Phillip Securities said.

"The main reason behind the investors making a positive approach towards the market was mainly due to the premiums paid by large investors, particularly the funds who took strategic positions."

Brokers said 7.76 million HNB shares changed hands at 162.00 rupees, and over 2.76 JKH shares changed hands at 154.00 rupees.

HNB closed at 163.25 rupees, up 25 cents, while conglomerate JKH closed at 152.00 rupees, up 2.00

Distilleries Company of Sri Lanka closed at 94.75 rupees, up 4.75 and diversified Hayleys closed at 155.25 rupees, down 1.75.

Commercial Bank of Ceylon closed at 175.00, up 4.25, Housing Development Finance Corporation closed at 130.00 rupees, up 5.00, and National Development Bank closed at 182.25, up 2.25.

Brokers said trading was thin apart for the large volume deals.

Plantations stocks also went up in price.

Agalawatte Plantations closed at 20 rupees, up 50 cents, Balangoda Plantations closed at 22.50 rupees, up 50 cents, Kegalle Plantations closed at 33.00 rupees, up 1.50, and Udapussellawa Plantations closed at 31.50 rupees, up 3.50.

Sri Lanka Telecom, Sri Lanka's largest fixed line operator closed at 42.25 rupees, up 75 cents, and Dialog Telekom, a unit of Telekom Malaysia closed flat at 7.00 rupees.

NTB of Sri Lanka Attacts Middle East Interest, Heraymila Investments Ltd (HIL) in Dubai’s International Financial Centre Bought a Major Stake

18th November 2009, www.thebottomline.lk, By Azhar Razak

Heraymila Investments Ltd (HIL), a licensed entity based in Dubai’s International Financial Centre has recently bought a major stake of Sri Lanka’s upcoming commercial bank, Nations Trust Bank. HIL has acquired 2 million ordinary shares, nearly 1.19 percent of the bank’s total shareholding, NTB’s recent interim financials showed.

“I believe the acquisition could have been the decision of the head of HIL, who is already a major shareholder of NTB,” NTB Chief Executive Officer (CEO), Saliya G Rajakaruna told the TBL.

Abdulaziz M. A. Al Mashal, the CEO of HIL presently holds a major 2.52% stake of NTB while his company, HIL also holds some of his other investments in international private & public equity and debt, real estate, aircraft leasing and structured products.
Meanwhile, Mashal is also among the list of twenty largest shareholders of Commercial Bank of Ceylon representing a stake of a little over 3% of shareholding and has a minor stake at John Keells Holdings.

Mashal, who hails from a prominent family in Saudi Arabia has a track record in private wealth management, strategic planning, risk management, investment banking, international equity markets, Islamic finance, project financing and venture capital.

John Keells to Invest 6BN to Upgrade and Build Hotels in Sri Lanka

22nd November 2009, www.lankabusinessonline.com

Sri Lanka's John Keells Holdings is ready to invest nearly 6.0 billion rupees over the next two to three years in upgrading and building new hotels if tourism arrivals pick up after the end of a 30-year war as expected, an official said.

Deputy chairman Ajith Gunewardene said JKH was planning a 190 room hotel in Beruwela on which design work would be finished by next April.

The hotel is expected to cost around 1.7 billion rupees, and will be a 4-star rated hotel coming under the group's mid-market 'Chaaya' brand. Its up market 5-star properties are branded Cinnamon.

JKH has a 10-acre long stretch in Beruwala, after it bought land from Sri Lanka's Confifi group next to an existing property. JKH's Beach Hotel Bayroo, in Beruwala was damaged during the 2004 Indian Ocean Tsunami.

JKH has already closed its 80 room Club Oceanic Hotel in the Eastern coast of Trincomalee to be refurbished at a cost of 400 million rupees as a 4-star rated property.

Bentota Beach Hotel, would also be refurbished towards the end of next year at cost of 800 million rupees. The 115 room property would be 5-star rated.

"If tourism arrivals increase we will be ready with rooms," Gunewardene told a forum organized by Leopard Capital, a private equity group in Colombo.

"Cambodia saw an exponential growth after unrest ended. Arrivals grew from 557,000 in 200 to 2.1 million in 2008. Sri Lanka had 438,000 tourists last year."

By 2011 JKH would be ready to start a 100 room 5-star hotel at its existing land in Ahungalle. The project may cost 1.6 billion rupees.

It could also build another 4-star 120 room hotel in the East Coast on its existing or acquired property. JKH had access to property in Kuchchaveli as well as in Nilaveli, Gunewardene said.