Mr. Susantha Ratnayake, Chairman of John Keells Holding, Mr. Ajit Gunawardene, Deputy Chairman and Mr. Ronnie Peiris, Finance Director have last week disposed of substantial shareholdings in the company and utilized the cash raised to exercise their rights under the company’s Employees Share Option Scheme.
All disposals have been at a price of Rs. 244 per share on Nov. 26 while the share options had been exercised the same day at Rs. 127.50.
Mr. Ratnayake has disposed 468,000 shares, Mr. Gunawardene 330,000 shares and Mr. Peiris 50,000 shares. Mr. Ratnayake had purchased 628,430 shares, Mr. Gunawardene 549,876 shares and Mr. Peiris 426,707 shares.
These details have been disclosed to the Colombo Stock Exchange under the requirement of the dealings in shares by directors of listed companies.
Executive directors of JKH are substantial shareholders of the company although they are not listed among the top 20 shareholders. According to the last quarterly financials of JKH, Ratnayake owned 5,839,930 shares of JKH as at Sept. 30, 2014, Gunawardene 7,079,022 shares and Peiris 1,332,375.
Analysts said that JKH’s executive directors are substantial beneficiaries of the company’s share option sheme issued for exercise at a future date at a determined price. They are cancelled if not exercised by that date.
"The beneficiary has the opportunity of exercising the options at times when the market price of the share is ahead of the option price and the added benefit of selling a portion of their existing shareholding in the company to raise the cash to exercise their options. Almost inevitably, in this way they can acquire many more shares than they have sold by the exercise of their options," an analyst explained.
"The share options are a major factor in the compensation package of executive directors and senior management."
Mr. S.E. Captain is the biggest single shareholder of JKH with the connected Paints and General Industries and his son, Rusi, listed among the top twenty shareholders of the company. The majority on this list are foreign funds. No serving executive directors are on this list although Mr. K. Balendra, a former chairman, is on it.
www.island.lk
All disposals have been at a price of Rs. 244 per share on Nov. 26 while the share options had been exercised the same day at Rs. 127.50.
Mr. Ratnayake has disposed 468,000 shares, Mr. Gunawardene 330,000 shares and Mr. Peiris 50,000 shares. Mr. Ratnayake had purchased 628,430 shares, Mr. Gunawardene 549,876 shares and Mr. Peiris 426,707 shares.
These details have been disclosed to the Colombo Stock Exchange under the requirement of the dealings in shares by directors of listed companies.
Executive directors of JKH are substantial shareholders of the company although they are not listed among the top 20 shareholders. According to the last quarterly financials of JKH, Ratnayake owned 5,839,930 shares of JKH as at Sept. 30, 2014, Gunawardene 7,079,022 shares and Peiris 1,332,375.
Analysts said that JKH’s executive directors are substantial beneficiaries of the company’s share option sheme issued for exercise at a future date at a determined price. They are cancelled if not exercised by that date.
"The beneficiary has the opportunity of exercising the options at times when the market price of the share is ahead of the option price and the added benefit of selling a portion of their existing shareholding in the company to raise the cash to exercise their options. Almost inevitably, in this way they can acquire many more shares than they have sold by the exercise of their options," an analyst explained.
"The share options are a major factor in the compensation package of executive directors and senior management."
Mr. S.E. Captain is the biggest single shareholder of JKH with the connected Paints and General Industries and his son, Rusi, listed among the top twenty shareholders of the company. The majority on this list are foreign funds. No serving executive directors are on this list although Mr. K. Balendra, a former chairman, is on it.
www.island.lk
No comments:
Post a Comment