May 23, 2007 (LBO) – Listed firm Khsatriya Holdings said it had reached a deal with the owners of Kings Super retail chain to purchase its assets and brand name, which will add a billion rupee business to the firm which is building a diversified group. King™s Super chain of supermarkets has been operating for the last five years and has 10 outlets in Colombo and its suburbs.
“King™s Super generated revenues in excess of one billion rupees during the last financial year and under the new management is expected to contribute significantly towards the revenue and profits of the Kshatriya Group,” Kshatriya said in a statement.
“With this investment Kshatriya expects to capitalise on the growing middle class and the low penetration of supermarkets in Sri Lanka.”
The company says its entry into the retailing sector is in line with the group™s expansion plans for Kotmale Holdings, allowing it to consolidate its position as a leading player in the Food and Beverage industry.
In separate statement to the Colombo Stock Exchange Kshatriya said it was buying only the assets of the retail chain and the price would be based on an ongoing valuation.
The company hopes to conclude the transaction within one month.
The company i