Financial Times

Rumours of shakeup at John Keells Holdings

The stock market was awash with rumours last week of changes at the top in the John Keells conglomerate, triggered by reports that its chairman Vivendra Lintotawela had taken a lengthy overseas trip, apparently for medical treatment. The reports said the top management was under pressure from certain big shareholders such as foreign fund managers to improve the company's profitability in terms of its size and capital base.

But a company spokesman dismissed the rumours and said Lintotawela had gone abroad on leave for a medical check-up. Other sources said Lintotawela had heart bypass surgery last year and had now gone to India for further treatment. Lintotawela's office said he was expected back this week.

Stock brokers said the rumours had had no apparent effect on the company's share price. JKH dipped 1.13 percent to Rs 109 on Friday after hitting a day's high of Rs 110 and a low of Rs 108. Some 168,000 shares were traded.
JKH had for long been the biggest capitalized stock on the Colombo bourse. The All Share Price Index closed up on Friday while the Milanka, which tracks the biggest and most liquids stocks, eased slightly.

Back to Business