Bulk of applications should come today and tomorrow:

JKH share buy back has added liquidity - Deputy Group Chairman

Ravi LADDUWAHETTY

Diversified blue chip conglomerate John Keells Holdings PLC believes that the share buy has added liquidity to the share in an overall illiquid market.

“The bulk of the applications should come on Monday and Tuesday and there are some shareholders who are buying in the market up to the quantity that they are entitled to offer on the buyback and taking advantage of the market differential,” JKH Deputy Group Ajit Gunewardene told Daily News Business yesterday.

This is creating added liquidity in the John Keells share which is very positive in an overall illiquid market, he said.

He explained that as of Friday (14) there was only a small amount of acceptances for the buy back offer. The offer closes tomorrow and the bulk of the applications should come in on today and Tuesday. The overall impact to the company and the shareholders has been positive, he said.

Asked how the Group was to regain its glory after the LMS judgment and the recent global financial crisis which have resulted in a fall in the JKH share price, he said: “JKH is a professionally run organisation with a strong team at all levels. The strategies are in place to continue to deliver value as we have done in the past and our people remain committed and motivated to achieve this.”

He said that confidence remains in John Keells Holdings.

“None of our long term shareholders have exited their JKH shareholding in the current global crisis. Our investors know that we have the structures, processes and talent in place to continue to create value.

There has been buying of JKH shares by foreign and local institutions and individuals in recent weeks,” he said.

“Our investors know that in our core businesses, we have the platform for strong growth in Sri Lanka as well as overseas.”

“Our Balance Sheet is strong and we can take advantage of the significant re-rating of valuations brought about by the global financial crisis.”

Responding to an allegation that JKH always keeps the only the foreign shareholders informed and not local investors and whether the time was opportune for local investor fora, and such as other corporates - Dialog Telekom, Hemas and SLT, he said :

“ This is not correct. We announce any material information immediately to the Stock Exchange and this is disseminated locally and overseas. We are always open to any queries that any local or foreign shareholder may want to make and are available to meet with any shareholder.

“We have a very effective and efficient investor relations unit which meets with any investor or analyst who wants more information and we believe this is a much more effective method and investor friendly method. We regularly meet with investors and analysts on a one-on-one basis and are happy to do so,” he added.