By: Staff Writer
Colombo (LNW): In a significant move towards State Owned Enterprise (SOE) reforms, seven identified entities the will set to undergo reforms under the supervision of transaction advisors soon.
Cabinet of Ministers at its meeting recently approved the recommended transaction advisors for this purpose.
“The decision is in line with the policy directive set by the government and aims to ensure effective and transparent divestiture of key entities,” said State Owned Enterprises Restructuring Unit (SRU) Director General Suresh Shah.
Under the leadership of President Ranil Wickremesinghe the relevant proposal was presented to the cabinet of ministers was approved resulting in the appointment of International Finance Corporation (IFC) a member of the World Bank Group for the divestiture of SriLankan Airlines Ltd., Lanka Hospitals Corporation PLC and Sri Lanka Telecom PLC.
For the four other entities Sri Lanka Insurance Corporation Ltd (SLIC), Hotel Developers Lanka Ltd (Hilton), Canwill Holdings Ltd (Hyatt) and Litro Gas Ltd (Litro, including Litro Gas Terminals Ltd) was carried out through a competitive bidding process following Government’s Consultant Procurement Guidelines.
Both local and international advisors submitted proposals, which were evaluated by a Special Cabinet Appointed Consultants Procurement Committee, appointed by the Cabinet. Following the procurement process, the committee recommended the appointment of transaction advisors as follows:
• Litro Gas Ltd (Litro, including Litro Gas Terminals Ltd): Deloitte Touche Tohmatsu India (Deloitte India) has been appointed as the transaction advisor.
• Canwill Holdings Ltd (Hyatt): Deloitte Touche Tohmatsu India (Deloitte India) has been appointed as the transaction advisor.
• Hotel Developers Lanka Ltd (Hilton): Colliers International Consultancy and Valuation (Singapore) Ltd and Platinum Advisors has been appointed as the transaction advisor.
• Sri Lanka Insurance Corporation Ltd (SLIC): Alvarez & Marsal Middle East Ltd., and Capital Alliance Partners LTD has been appointed as the transaction advisor.
Shah said the agreements with respect to these appointments will be concluded shortly, setting the stage for the next phase of the divestiture process including investor engagement.
To ensure transparency in the divestiture process, prospective investors will be invited to express interest (EOI) via advertisements to be published in both the local and international press.
Investors shortlisted via the EOI process will be provided access to data rooms populated with information necessary for a comprehensive due diligence.Thereafter such investors will be Requested to submit both technical and financial proposals in response to a Request for Proposals (RFP).
“These divestitures are expected to contribute towards sustainable economic growth and a more competitive economy whilst better safeguarding citizens interests,” Shah added.
