Mar 18, 2012

Malaysia - Khazanah buys into listed Sri Lanka conglomerate



KUALA LUMPUR: Khazanah Nasional Bhd, via its special-purpose vehicle Broga Hill Investments Ltd, has acquired an 8.85% stake in John Keells Holdings Plc (JKH), Sri Lanka's largest listed conglomerate, in a deal worth RM366mil.

The JKH group had business interests in several key sectors of Sri Lanka's economy, including tourism, transportation, leisure and tourism, property, retail and financial services, Khazanah said in a statement.

Khazanah managing director Tan Sri Azman Mokhtar said: “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.”

Sri Lanka is already a positive experience for Khazanah's investee companies.

Axiata Group Bhd subsidiary Dialog Group Bhd is the largest mobile telephony player in Sri Lanka while the CIMB Group has established an investment banking joint venture in the country.

Sri Lanka is currently experiencing a strong economic revival post-conflict as evidenced by the recent annual economic growth of about 8%.

Bernama



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