Daya Group gets four seats on Blue Diamonds Board

The diversified Daya Group secured four seats on the board of Blue Diamonds Jewellery Worldwide Plc (BLUE) last week.

The appointment of four directors, including Daya Group Director P.M.K. Gamage and attorney-at-law Sudath Jayasundera, was made at a board meeting on Friday after the market was closed. The newly-constituted board also met on Friday.  A formal disclosure is likely to occur today. 

Promodya Manjaree Gamage purchased 4.16 million shares or over 2% of BLUE on 12 July, increasing the overall direct stake to nearly 11%. As of March 2016, Gamage’s stake was only 2.77%, which means Gamage has been collecting available quantity of BLUE.

BLUE was the top gainer last week percentage-wise, up 108% or Rs. 1.40 to close at Rs. 2.70 (after hitting a 54-week high of Rs. 2.90) with 58.5 million shares traded for Rs. 123.5 million. 

The company last week announced a business positive consignment agreement with Swarna Mahal Jewellers Ltd.

The other new director Jayasundera also serves on the Board of Bimputh Finance, which comes under the Daya Group, as well as serving on the boards of Harischandra Mills Matara Plc, Bogawantalawa Plantations Plc and Metropolitan Resources Plc. 

There was speculation that Jayasundera had been appointed Chairman of BLUE with the Chinese shareholder Xia Liqiang, who owns around 20% stake, stepping down as Chairman and Managing Director but continuing to be on the board.

Owned by Ministers Daya and Anoma Gamage, the Daya Group has interests in apparel, construction, transport, fashion, micro-banking, household and consumer electronics, agriculture cultivation, plastics, packaging, printing, aviation and tourism. The group has over 4,000 employees and generates more than Rs. 5 billion in turnover. 

The BLUE deal with Swarna Mahal Jewelers Ltd. is for a period of three years starting from 24 June 2016 and was brokered in order to sell and promote its Fior brand. In its stock market disclosure, BLUE said this strategic contract will enhance and popularise the Fior brand in the local market together with the recognised brand name of Swarna Mahal. 

Swarna Mahal will launch an initial marketing campaign through audio/visual media and other promotional channels to promote Fior products to the local market. BDJW is expected to show certain top line growth in the near future.