Leading diversified conglomerate Jon Keells Holdings (JKH) on Friday (11) announced it acquired a controlling stake in Rajawella Holdings Limited (RHL) with a total investment of Rs.1.04 billion.
With this purchase, JKH, together with its subsidiaries, increased its shareholdings in RHL from 16.9 percent to 51 percent.
In a filing to the Colombo Stock Exchange it was shared that the total investment comprises a partial buyout from existing shareholders, an infusion into RHL, and a release of an existing sublease of land held by the JKH Group valued at Rs.161 million in exchange for shares.
The cash infusion for Rs. 421 million was based on an upfront amount of Rs. 126 million, Rs. 84 million in 12 months and Rs. 210 million in 24 months.
The partial buyout of Rs. 462 million of existing shareholders took place with an initial upfront amount of Rs. 115 million, and will continue with the same amount in the next 12, 24 and 36 months.
RHL operates an 18 hole Donald Street designed golf course in Digana along with the overall development potential of the land bank that complements JKH’ leisure and property portfolio. (SAA)