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By Channa Kasturisinghe

The Government has obtained 160 percent more than the earlier value of the highest bid for the 40 percent stake of Sathosa and the successful bidder will be announced shortly, Commerce and Consumer Affairs Minister Ravi Karunanayake told the media yesterday.

He denied allegations that there were flaws in the tender procedure of the Sathosa privatisation deal and the Government called for amended bills in order to obtain the highest value for the 40 percent Sathosa stake.

Five bidders submitted offers last November for the stake and 100 percent management of Sathosa which include a Singaporean company with Abans, an Australian retail chain - Foodland, Cargills Ceylon Ltd, a consortium of John Keells Group, Carsons and Ceylon Biscuits and South Africa's largest supermarket - Shoprite Checkers. Two companies had been short-listed following the closure of the bids.

However, the Government later called the five bidders for amended bids claiming that the 40 percent stake could realise a higher value.

The Minister denied newspaper reports saying that there were flaws in the tender procedure and said that the Ministry took every measure to maintain the transparency of the deal.

"After the five parties submitted their offers for the 40 percent stake of the CWE we evaluated the bids and came to the conclusion that the offers were far below than the real value of the stake.

Subsequently we informed the Cabinet sub-committee of the necessity to call for amended bids. We decided to give another opportunity to the five bidders to submit amended bids. As a result we have been able to obtain 160 percent more than the earlier highest bid offered for the stake, he said.

The CWE is a people's institution and as a responsible Government we should obtain the highest value for the stake. There were no underhand dealings and the tender procedure was transparent," Minister Karunanayake said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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