Sri Lanka’s Kelsey Developments in delayed disclosure

ECNOMYNEXT – Sri Lanka’s Kelsey Developments Plc said it had bought a Rs487 million property from key management personnel in December 2014, but it was not disclosed to shareholders ‘due to an oversight’.

Kelsey Developments said Kelsey Homes (Pvt) Ltd, a wholly owned unit, had bought a property at Minuwangoda Road, Negombo for Rs487 million from Dinesh Schaffter, Manjula Mathews and Tarni Schaffter, Dinesh Schaffter’s wife.

Dinesh Schaffter and Manjula Mathews were key management personnel, and the transaction was more than 10 percent of the share capital, requiring immediate disclosure.

The firm did not disclose it in 2014 due to a oversight, said a May 3 stock exchange filing.

The company says an up-front payment of Rs300 million will be made to the owners and the balance paid from sales proceeds.

The firm says a profit of at least Rs150 million is expected.
 

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