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By Chamitha Kuruppu

Apart from the six state owned bus companies now under the management of the UK based Ibis company, of the 13 cluster bus companies the sale of share of the remaining seven companies is yet to take place as there is to no response from interested parties.

Director General of the Public Enterprise Reforms Commission (PERC)Deepal Gunaratne told the Daily News yesterday that though the divestiture of 39% shares of the seven cluster bus companies was advertised, PERC has not received any response from investors so far.

"PERC will pursue it when the time is right," Gunaratne said. Asked whether the PERC has set a deadline to bring the remaining cluster bus companies to the bourse, he said that the institution is yet to take a final decision about the issue. "We have not decided on anything as yet," Gunaratne said.

In fact the Director General said that the newly appointed chairman of PERC Chrishantha Perera will be able to give the exact details about the next step of the deal. However, Cooray was not accessible for any comments.

The government's ambitious an equally controversial privatisation of 13 state owned passenger bus companies was postponed several times last year. Of the 13 companies shares belonging to six cluster bus companies namely Colombo Metropolitan, Gampaha, Kalutara, Sabaragamuwa, Mahanuwara and Rajarata Companies were sold at the Colombo Stock Exchange (CSE) at the end of last year, which was called the biggest transaction that took place at the CSE. The Secretary to the Treasury and the investor Ibis company signed the Management Agreement on March 31, 2003 pertaining to the management of the six bus companies.

The government will hold 50% shares in these state-owned cluster bus companies, while 39% will belong to the buyers and 11% to the employees of the Sri Lanka Central Transport Board (SLCTB).

The value of the 39% stake of all 13 bus companies was estimated at Rs.6 billion comprising Rs.3.4 billion as equity and Rs.2.2 billion as external funding.

The Vavuniya Peoplised Bus Company, New Eastern Bus Company, Wayamba Bus Company, Ruhunu Bus Company, Uva Bus Company, Nuwara Eliya Bus Company and the Northern Regional Transport Board are yet to finalise the sale of shares.

Meanwhile, early this month PERC said that they will soon commence restructuring the Share Capital of bus companies by capitalising debts due to the government. The issue of share certificates to employees of the 13 bus companies concluded on April 31 and nearly 30,000 share certificates were issued.

According to the PERC advertisement the investors were scheduled to submit business proposals for the remaining companies by December 20, 2002 and the bid bond by December 27, 2002.

The bidding was due to take place on December 30, 2002 at the Colombo Stock Exchange.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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