The Sri Lanka Insurance Corporation (SLIC) last week boosted its holding in the John Keells Holdings (JKH) conglomerate to 7% by buying a large block of shares held by Mr. Raj Rajaratnam’s Galleon Funds.

SLIC previously had under 2% of JKH in its Life Fund which has now been increased with the Galleon stake making the company one of the biggest local shareholders of JKH.

A JKH spokesman said that Rajaratnam continues to hold a personal stake of 9.5% in the conglomerate where the biggest shareholders are the Captain interest along with related companies with around 15% of the company’s equity.

The estate of the late Mr. Ajit de Fonseka which sold down part of its holding following his death continues to hold 2.4% of JKH.

JKH sources said that Rajaratnam, in a conversation last week with associates here, had indicated that he will continue to hold his personal stake and possibly add to it if the time and price is right.

"Galleon, on a mark to market basis on which many funds and companies value their equity holdings, had made an estimated 20% capital gain on its sale last week of its JKH holdings," an analyst said.

Asked whether this was on cost basis at which the shares were first purchased, he said `No’. It depended on the current market price.

JKH last year successfully floated a pricey rights issue sweetened by a bonus in a cash call on its shareholders which was fully subscribed. After factoring the bonus that followed the rights issue at Rs.140 per share, shareholders who took their rights would have paid Rs.122 per share.

JKH is now selling at around half this price although its stock moved up on the CSE on Friday to the Rs.66 level having earlier slumped to Rs.50 per share.