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Khazanah invests in Sri Lanka's largest listed firm
by hlk Sat 17 Mar 2012, 15:49
KUALA LUMPUR: Khazanah Nasional Bhd, the government's investment arm, has bought an 8.85 per cent stake in Sri Lanka's largest listed company, John Keells Holdings Plc (JKH), for RM366 million (14.5 billion Sri Lankan rupees).
JKH is a conglomerate with diverse business interests that include tourism, transportation, leisure and tourism, property, retail and financial services.
"The entry into JKH offers Khazanah and its group of companies opportunities to participate across a wide range of businesses where the JKH group is involved in.
"At the same time, it allows Khazanah to participate in Sri Lanka's positive growth story, and is in line with our strategy of investing in the region," Khazanah managing director Tan Sri Azman Mokhtar said in a statement yesterday.
It is understood that CIMB Group and Bank of America Merrill Lynch were joint advisers to Khazanah in the deal.
Sri Lankais currently experiencing a strong economic revival, as evidenced by recent economic growth of about 8 per cent a year.
The island nation has already been a "positive experience" for Khazanah's investee companies, Azman said. Axiata Group Bhd's subsidiary, Dialog, is the largest mobile telephony player in Sri Lanka while CIMB Group has an investment banking joint venture in the country.
Earlier this month, CIMB Group entered into a strategic collaboration with JKH's stockbroking unit, John Keells Stock Brokers (Pvt) Ltd, to promote and facilitate trading on the Colombo Stock Exchange (CSE) and provide co-branded research for former's clients.
Khazanah's entry into JKH was through its special purpose vehicle Broga Hill Investments Ltd.
It bought about 75 million shares in JKH at 194 rupees each, according to sources. Sri Lanka's Employees Provident Fund was among key sellers.
The JKH group, the largest by market capitalisation on the CSE, turned in a profit after tax of 9.06 billion rupees for the financial year ended March 31 2011, a 63 per cent rise from a year ago.
It manages the largest number of hotel rooms in Sri Lanka and owns the country's largest privately-owned transportation business, besides also running tea plantations.
JKH is a conglomerate with diverse business interests that include tourism, transportation, leisure and tourism, property, retail and financial services.
"The entry into JKH offers Khazanah and its group of companies opportunities to participate across a wide range of businesses where the JKH group is involved in.
"At the same time, it allows Khazanah to participate in Sri Lanka's positive growth story, and is in line with our strategy of investing in the region," Khazanah managing director Tan Sri Azman Mokhtar said in a statement yesterday.
It is understood that CIMB Group and Bank of America Merrill Lynch were joint advisers to Khazanah in the deal.
Sri Lankais currently experiencing a strong economic revival, as evidenced by recent economic growth of about 8 per cent a year.
The island nation has already been a "positive experience" for Khazanah's investee companies, Azman said. Axiata Group Bhd's subsidiary, Dialog, is the largest mobile telephony player in Sri Lanka while CIMB Group has an investment banking joint venture in the country.
Earlier this month, CIMB Group entered into a strategic collaboration with JKH's stockbroking unit, John Keells Stock Brokers (Pvt) Ltd, to promote and facilitate trading on the Colombo Stock Exchange (CSE) and provide co-branded research for former's clients.
Khazanah's entry into JKH was through its special purpose vehicle Broga Hill Investments Ltd.
It bought about 75 million shares in JKH at 194 rupees each, according to sources. Sri Lanka's Employees Provident Fund was among key sellers.
The JKH group, the largest by market capitalisation on the CSE, turned in a profit after tax of 9.06 billion rupees for the financial year ended March 31 2011, a 63 per cent rise from a year ago.
It manages the largest number of hotel rooms in Sri Lanka and owns the country's largest privately-owned transportation business, besides also running tea plantations.
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