Blue Ocean Group buys 60% of Kelsey Developments for Rs. 257 Mn.

Blue Ocean Group said it acquired a 60% stake in Kelsey Development PLC for Rs. 257 million. The stake amounting to 10.457 million shares was done at Rs. 24.60. The sellers were Schaffter brothers Praksah and Ramesh who held 30% each.

With the acquisition of control, Kelsey will be a member of the Blue Ocean Group, a pre-eminent real estate conglomerate with a well-balanced portfolio, founded by top professional cum business leader Sivarajah Thumilan (Pictured) who is also the Chairman and CEO.

Control of Kelsey was held by Janashakthi Ltd. and related parties. In September the parent Janashakthi Ltd., sold its entire stake of 85.24% or 14.85 million shares Kelsey to its ultimate shareholders Prakash and Ramesh with a view of restructuring the internal balance sheet of the Janashakthi Group.

With the acquisition Blue Ocean will have to make a mandatory offer to the remaining shareholders. As at the end of June 2022, the public holding of Kelsey was 14.76% held by 1,100 shareholders. Net assets per share as at end June 2022 was Rs. 15.37.

Incorporated in 1983, Kelsey Developments provides specialist operations in real estate development through two subsidiaries, Kelsey Homes Ltd. and Kelsey Homes (Central Park) Ltd. Kelsey Homes has completed over 200 projects serving over 2,000 homeowners, creating a considerable portfolio of superior accommodation.

Kelsey as at June 30 had Rs. 875.7 million in retained losses at group level and positive retained earnings of Rs. 35 million at company level. In the 1Q of FY23, Group revenue grew to Rs. 132 million from Rs. 50 million a year ago. Pre-tax loss was Rs. 61 million, up from Rs. 39 million in 1Q of FY22.

The Group currently has a number of condominium projects as well as a variety of public and government projects.