Nimal Perera back in buying mode

• Triggers first personal takeover move by acquiring 67% stake in Kalamazoo for Rs. 35 m
• Plans to convert his first listed entity to an investment holding company
• Ratnanather family and CT Holdings divest ownership

Nimal Perera

Market mover and investor Nimal Perera got back to buying mode when he acquired a 67% stake in Kalamazoo Systems Plcfor Rs. 35 million, triggering his first-ever personal takeover deal.

The stake comprises 33,489 shares amounting to 66.98% for Rs. 37.75 million or Rs. 1,067.70 per share. With a previously acquired 1% or 500 shares in 2011, Nimal’stotal holding has risen to 33,989 shares or 67.98%. 

Nimal, who along with Dhammika Perera has been linked to over a dozen of corporate takeovers in the past, will make a mandatory offer to acquire the remaining stake shortly.

Given the book value of Rs. 533.26 per share at Group level, the price paid reflects a premium. Net asset value at Company level is Rs. 290 per share.

The sellers included the Ratnanather family which had around 51% and CT Holdings Plc which owned 19.5% whilst related party Ceylon Printers Plc also exited. 

Longstanding shareholders Cyril Gardiner Ltd. and Sir Chittampalam A. Gardiner Trust collectively owning around a 10% stake didn’t sell.

When compared to the previously traded price, yesterday’s closing at Rs. 1,071.90 was lower by Rs. 748 or 41%. Last week 120 shares of Kalamazoo traded between a 52-week high of Rs. 1,900 and a low of Rs. 1,400 before closing at Rs. 1,300.70, still up by Rs. 519. In the previous week, the stock rose by Rs. 60.70 on a volume of mere seven shares.

The Company has around 400 shareholders with number of shares issued being 50,000. There are 397 shareholders owning below 1,000 shares.

Kalamazoo, which is a British brand, specialises in the sale of Kalamazoo Equipment (binders) and Stock Sheets (as well as customised business forms) for the printing industry.

However, Nimal is expected to restructure the company and analysts said he was likely to consolidate his other investments both in listed and non-listed entities under Kalamazoo. Nimal has a range of personal ventures in addition to owning Mercantile Produce Brokers as well as stakes in listed companies. 

The Company had assets worth Rs. 24 million as at June 2015 whilst at Group level the figure was Rs. 37 million. Capital and reserves amounted to Rs. 27 million including retained earnings of Rs. 26 million as at 30 June 2015. Total liabilities   were Rs. 9 million, down from Rs. 18 million (Company) and Rs. 17 million (Group) in June 2014.