Govt. selects transaction advisors for sale of 4 SOEs

Hilton Hotel Colombo

Sri Lanka Insurance Corporation

Grand Hyatt Hotel

Litro Gas Lanka

• CAL, Deloitte India and Platinum Advisors win competitive bid; Asia Securities, PwC, CT CLSA and NDB miss out

By Nisthar Cassim

The Government has selected transaction advisors for the sale of four State Owned Enterprises (SOEs).

For the sale of Sri Lanka Insurance Corporation (SLIC) the selected advisor is Capital Alliance (CAL).

Deloitte India has been selected to advise on the divestiture of both Canwill Holdings Ltd (Grand Hyatt Hotel), and Litro Gas Lanka Ltd including Litro Gas Terminals Ltd (LPG retailing).

Platinum Advisors has been picked for the sale of Hotel Developers Lanka Ltd (Hilton Hotel Colombo). The three companies were among those short-listed. The selection was by the Standing Cabinet Appointed Consultant Procurement Committee of the State Owned Enterprise Restructuring Unit (SRU), within the Finance Ministry. Bids were evaluated on the strength of technical capabilities and financial proposals.   

Other contenders for the advisory role on the basis of short listing were Asia Securities, Deloitte, PwC and CT CLSA for SLIC; whilst Asia Securities, Capital Alliance, Platinum, and PwC for Canwill Holdings, for Litro were Asia Securities, Capital Alliance, Platinum, PwC and NDB; and Asia Securities, Capital Alliance, Deloitte, and PwC for Hotel Developers.

The SRU called for EOIs for transaction advisory role in April and extended till 8 May based on multiple requests.

SRU Director General Suresh Shah recently admitted that the original expectations were for a bigger response for the EOIs but considering Sri Lanka’s status quo and past initiatives on reforms which were abandoned mid-way, the outcome was satisfactory.

He also expressed the hope of completing the first of the SOE divestiture by the latter part of this year. 

The advisors will help the SRU with due diligence on the sales side and with valuation and the creation of investor data rooms etc.

Thereafter the Government will call for EOIs and RFPs for individual SOEs.

Shah said the cabinet will then make an award upon proper evaluation, and the entier process will be “very transparent.”