Thursday Nov 14, 2024
Thursday Nov 14, 2024
Wednesday, 25 May 2016 00:12 - - {{hitsCtrl.values.hits}}
Premier blue chip John Keells Holdings (JKH) yesterday announced that its Board of Directors resolved to increase the number of shares by way of a subdivision on the basis of seven (7) existing ordinary shares will be subdivided into eight (8) ordinary shares.
Previously JKH sub divided shares on the same basis in May last year. Following the latest proposed move the number of shares currently in issue will increase from 1,189 million to 1,359 million.
The subdivision will also result in an adjustment in the number of warrants accruing to the holders of 2016 Warrants and their purchase price will be adjusted to take into account the proposed subdivision so that the warrant holder receives a revised number of shares of the Company which he or she would have owned or have been entitled to receive after the subdivision had such warrant been exercised prior to the subdivision.
Resultantly, the 50.28 million 2016 Warrants in issue as at 24 June 2016 will be adjusted so that after the sub division 57.46 million 2016 Warrants will be in issue and their purchase price of Rs. 170.62 be adjusted to Rs. 149.29.
Contingent on the approval of the subdivision, the number and exercise price of ESOP in issue will be adjusted proportionately as well.
The proposed subdivision is subject to shareholder approval.
Premier blue chip John Keells Holdings yesterday announced a move to offer a 2.25% stake in the company for its employees.
The shareholding via Employee Share Option Plan (ESOP) will be for three years and offered not more than 0.75% annually.
Based on the current number of issued shares, the ESOP of 2.25% amounts to 26.76 million shares and 0.75% amounts to 8.9 million shares. However the number of shares on offer will vary and ultimately depend on the number of issued shares of JKH on the date of the offer of each tranche of options.
The current stated capital of JKH is 1.189 billion shares.
JKH has had ESOPs since 1996 and executive directors and executives and connected parties were holding nearly 5% stake by end of last FY15. Via four schemes expiring between 2015/6 and 2019/20, 29 million shares had been granted and 12.4 million remain to be vested.
In announcing the latest move, JKH Board said it is of the view that maintaining a proprietary interest and a long term commitment amongst the senior executives of the Group including its executive directors on a continuing basis is imperative to increasing shareholder value.
