The Cabinet of Ministers has granted approval for awarding procurement of Transaction Advisory Services for the divestment of seven (07) state-owned enterprises.
According to the Ministry of Finance, the government has taken a significant step towards state-owned enterprise reform with the appointment of transaction advisors for the divestiture of 7 identified entities.
The decision is in line with the policy directive set by the government and aims to ensure effective and transparent divestiture of key entities.
The Cabinet of Ministers has approved the appointment of The International Finance Corporation (IFC) a member of the World Bank Group for the divestiture of Sri Lankan Airlines Limited, Lanka Hospitals Corporation PLC and Sri Lanka Telecom PLC.
The appointment of advisors for the remaining 4 entities, namely Sri Lanka Insurance Corporation Ltd (SLIC), Hotel Developers Lanka Ltd (Hilton), Canwill Holdings (Pvt) Ltd (Hyatt) and Litro Gas (Pvt) Ltd (Litro, including Litro Gas Terminals (Pvt) 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 (Pvt) Ltd , including Litro Gas Terminals (Pvt) Ltd): Deloitte Touche Tohmatsu India (Deloitte India) has been appointed as the transaction advisor.
• Canwill Holdings(Pvt) Ltd (Hyatt): Deloitte Touche Tohmatsu India (Deloitte India) has been appointed as the transaction advisor.
• Hotel Developers Lanka Ltd (Hilton): Colliers International Consultancy & 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.
These recommendations were approved by the Cabinet of Ministers at its meeting held on Monday 10th July. 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 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. (NewsWire)
