Fairfax-linked HWIC Asia Fund ups stake in JKH

Fairfax-linked HWIC Asia Fund increased its stake in John Keells Holdings to 19.4 percent from 13 percent with the conversion of 110 million unlisted convertible debentures into shares.

The Colombo Stock Exchange (CSE) yesterday announced that HWIC Asia Fund converted 110 million unlisted convertible debentures at Rs.130 per share.

In 2022, JKH raised US$ 75 million from Fairfax in the way of a private placement of rupee denominated unlisted convertible debentures amounting to 208,125,000 debentures with a maturity period of three years, while granting Fairfax the ability to convert each debenture to one new ordinary share of JKH after 18 months from the date of issue until maturity. The 18-month period elapsed early this month.

The dilution from this issuance is 7.34 percent, based on the number of ordinary shares outstanding as of yesterday, according to JKH.

The remaining outstanding debentures post this conversion amount to 98,125,000 debentures with a face value of Rs.12.76 billion. The remaining debentures are eligible for conversion till 12 August 2025.  

Earlier this month, HWIC Asia Fund in  a related party transaction acquired 61.9 million shares or 4.5 percent held via Citigroup Global Markets Ltd, increasing its holding in JKH to 13 percent.

At the market closure yesterday, JKH share was down by Rs.2.25 or 1.2 percent to Rs.185.75 per share.