By Ishara Gamage
Ceylon Finance Today: Government of Sri Lanka (GoSL) is planning to list a minority stake (30 to 49%) of the Sri Lankan Catering (Private) Ltd., the fully owned subsidiary of state owned SriLankan Airlines Ltd., via a competitive, open bidding process, GoSL sources told Ceylon FT on Friday.
This will be the first State-owned enterprise to be listed on the Colombo Stock Exchange under the present government's economic sector liberalization process. "There were seven parties/consortiums which have had already submitted their voluntary expression of interest (EoIs) to this catering business." they said.
No indicative rate was immediately available, neither whether the management control of Catering would be in the possession of the successful bidder.
Ceylon FT also learns that out of these seven parties which had submitted EoIs, three of those were from financial services companies, namely, Acuity Partners (Pvt.) Ltd., NDB Investment...Bank Ltd. and CT CLSA SECURITIES (PVT.) LTD.
Meanwhile, SriLankan Catering General Manager P.L.P. Vithana speaking to Ceylon FT said that they will consider all possible options to grow their business.
"I cannot reveal our plans to the media. We will reveal it when it happens", he said.
SriLankan Catering is currently the caterer sole airline operating at the Bandaranaike International Airport.
"The government may follow an 'all-or-nothing bidding' process to list this entity," sources said. But when contacted, Colombo Stock Market authorities said that there were no such 'all-or-nothing bidding' process, but they can adopt a suitable procedure when required.
The sources also said that the government is also planning to list the Ground Handling wing of SriLankan Airlines Ltd, which is 100% owned by GoSL, caters to ground handling requirements of a large number of airlines that operate out of Colombo's Bandaranaike International Airport, including SriLankan.
-Source of fact sheet only –Company web page
Attracting State-Owned Enterprises (SOEs) to get listed was a must to improve market liquidity and confidence, Colombo Stock Exchange (CSE) Chairman Vajira Kulatilaka earlier told Ceylon FT.
Meanwhile, CSE CEO Rajeeva Bandaranaike then said that in addition to the proposed new Board of Investment companies & Small & Medium Enterprise listing boards, the CSE will also consider to introduce a separate SOE Board as well.
Speaking to Ceylon FT recently, Kulatilaka also highlighted that the lack of market liquidity had been a negative factor in attracting foreign investors to Sri Lanka's capital market.
"As we know the government represents the lion's share of our economy. They control our banking, insurance, port, aviation, transport and gas sectors. They also own the largest land bank. With this limited private sector scope, the market growth may get stagnated. So, it is better to list at least 10%-20% of the government's profit making entities," he said.
"State owned commercial banks, Sri Lanka Insurance Corporation, SriLankan Catering (Pvt.) Ltd. and Litro Gas are the possible SOEs that can get listed first, he had then remarked.
This type of suggested (SOE) partial listings cannot be considered as privatization. First of all we have to stop all types of 'politicizations' and we have to introduce independent and impartial management and governance systems. This will bring win-win situations to all stakeholders", he said.
www.ceylontoday.lk
Ceylon Finance Today: Government of Sri Lanka (GoSL) is planning to list a minority stake (30 to 49%) of the Sri Lankan Catering (Private) Ltd., the fully owned subsidiary of state owned SriLankan Airlines Ltd., via a competitive, open bidding process, GoSL sources told Ceylon FT on Friday.
This will be the first State-owned enterprise to be listed on the Colombo Stock Exchange under the present government's economic sector liberalization process. "There were seven parties/consortiums which have had already submitted their voluntary expression of interest (EoIs) to this catering business." they said.
No indicative rate was immediately available, neither whether the management control of Catering would be in the possession of the successful bidder.
Ceylon FT also learns that out of these seven parties which had submitted EoIs, three of those were from financial services companies, namely, Acuity Partners (Pvt.) Ltd., NDB Investment...Bank Ltd. and CT CLSA SECURITIES (PVT.) LTD.
Meanwhile, SriLankan Catering General Manager P.L.P. Vithana speaking to Ceylon FT said that they will consider all possible options to grow their business.
"I cannot reveal our plans to the media. We will reveal it when it happens", he said.
SriLankan Catering is currently the caterer sole airline operating at the Bandaranaike International Airport.
"The government may follow an 'all-or-nothing bidding' process to list this entity," sources said. But when contacted, Colombo Stock Market authorities said that there were no such 'all-or-nothing bidding' process, but they can adopt a suitable procedure when required.
The sources also said that the government is also planning to list the Ground Handling wing of SriLankan Airlines Ltd, which is 100% owned by GoSL, caters to ground handling requirements of a large number of airlines that operate out of Colombo's Bandaranaike International Airport, including SriLankan.
Fact sheet of SriLankan Catering:-
- Yearly Productions-5.6 million meals;
- Peak Season (November-March)16,066 meals per day;
- Off Peak Season (April - October) –14,990 meals per day;
- Daily Average Production: 15,501 meals per day;
- Number of Flights per Year – 27,835;
- 'Number of Flights per Day' – 76 flights;
- Total Number of Catering High-loaders – 19;
- Number of Refrigerated Catering High – loaders:12;
- Number of Commissary Vehicles – 7;
- Total Number of Employees – 882 (Including Executive Staff up to 31/05/15)
-Source of fact sheet only –Company web page
Attracting State-Owned Enterprises (SOEs) to get listed was a must to improve market liquidity and confidence, Colombo Stock Exchange (CSE) Chairman Vajira Kulatilaka earlier told Ceylon FT.
Meanwhile, CSE CEO Rajeeva Bandaranaike then said that in addition to the proposed new Board of Investment companies & Small & Medium Enterprise listing boards, the CSE will also consider to introduce a separate SOE Board as well.
Speaking to Ceylon FT recently, Kulatilaka also highlighted that the lack of market liquidity had been a negative factor in attracting foreign investors to Sri Lanka's capital market.
"As we know the government represents the lion's share of our economy. They control our banking, insurance, port, aviation, transport and gas sectors. They also own the largest land bank. With this limited private sector scope, the market growth may get stagnated. So, it is better to list at least 10%-20% of the government's profit making entities," he said.
"State owned commercial banks, Sri Lanka Insurance Corporation, SriLankan Catering (Pvt.) Ltd. and Litro Gas are the possible SOEs that can get listed first, he had then remarked.
This type of suggested (SOE) partial listings cannot be considered as privatization. First of all we have to stop all types of 'politicizations' and we have to introduce independent and impartial management and governance systems. This will bring win-win situations to all stakeholders", he said.
www.ceylontoday.lk
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