Schaffter brothers buy 85% stake of Kelsey Developments at market price

Wednesday, 7 September 2022 01:26 - - {{hitsCtrl.values.hits}}

Schaffter brothers Prakash and Ramesh are buying 85.24% stake in Kelsey Developments PLC for Rs. 365.4 million from related parties and parent Janashakthi Ltd.

The stake amounts to 14.856 million shares. A block of 42.62% or 7.43 million shares was transferred yesterday to Prakash at the market price of Rs. 24.60 each for a total consideration of Rs. 182.75 million.

The balance stake of an equal amount will be transferred today to Ramesh at the same price. The duo are the ultimate shareholders of KDL by virtue of them holding 100% stake in Janashakthi through Schaffters Ltd.

The transaction has no implications for the ultimate shareholder of KDP and will not trigger the SEC Takeovers and Mergers Code.

The company said the Board of Directors and the ongoing business operations of KDL and its subsidiaries will remain unchanged.

The public float of KDL is 14.76%, held by 1,101 shareholders as of the end of June. As of 30 June, the net asset per ordinary company share was Rs. 15.37.

It traded at a high of Rs. 27.90 and a low of Rs. 20 before closing at Rs. 20.10 during the June quarter. A year ago, the highest price was Rs. 40.90, the lowest was Rs. 29.30, and it closed at Rs. 32.20. Kelsey Developments recorded a consolidated loss after tax of Rs.62.76 million for the quarter ended 30 June, compared to the loss after tax of Rs. 39.07 million for the previous year. Total revenue for the period was Rs 132.23 million (Previous Year 2021/22 - Rs. 50 million).

The Group carries retained losses of Rs. 876 million as of 30 June whilst at company level it was a profit of Rs. 35.4 million.