Sri Lanka's foremost conglomerate, John Keells Holdings (JKH) PLC, with the approval of its shareholders at a general meeting ,has announced a new Employee share option Plan (“ESOP schemes” ) amounting to 1.50 % of the issued share capital of the company , which not more than  0.5% will be issued annually over a period of three years.

The JKH Board decision was made on 24 May 2019 to issue share options under an employee share option plan, but the disclosure was last week due to an inadvertent oversight, the company stated.

The scheme which was implemented in 1996 have been approved by the regulatory bodies and operated in accordance with the guidelines set out by the Securities and Exchange Commission of Sri Lanka and the Colombo Stock Exchange.

The board of directors is of the view that maintaining a proprietary interest and a long-term commitment amongst the senior executives of the group, including its executive directors, on a continuing basis, is imperative to increasing the shareholder value in the Company.

Based on the issued capital of the company, the total via new ESOP Plan of 1.50%, and 0.50% per annum would amount to 19,772,599 and 6,590,866 options to purchase 19,772,599 and 6,590,866 converted shares respectively.

However, the number of shares on offer will vary and ultimately depend on the number of shares representing the stated capital of the company on the date of the offer of each tranche of options as aforesaid.

The stated capital of JKH as at 31 May 2019 is Rs.62,802,173,189.52 and number of shares representing the current stated capital is 1,318,173,279 Ordinary Shares.

The granting of options under the proposed employee share option scheme is in compliance with the Listing Rules of the Colombo Stock Exchange and subject to shareholder approval, by way of a Special Resolution at a General Meeting. The issue and listing of shares issued pursuant to such scheme is subject to approval from the Exchange at the time of exercise.

The company sincerely regrets the delay in this disclosure due to an inadvertent oversight. It reiterates that ESOPs have been granted by JKH on an annual basis since 1996 and this new Plan follows the same principles of the previous ESOP Plans approved by shareholders. The company also wishes to point out that it is yet to receive shareholder approval and make any grants under the proposed ESOP Plan.