Many eyeing Shell
Government also in the fray:
Three to four multi-national companies are vying for the Shell Gas
company shares which are on offer.
The Shell Gas Lanka plant in Kerawalapitiya
The Shell Gas sell out deal is still in the preliminary stage and the
Laugfs Holdings Limited is interested in securing the deal, Laugfs
Holdings Limited Chairman W.K.H. Wegapitiya told Daily News Business.
“We are delighted at the prospect that Shell operations will come
back to Sri Lanka. The parent company will list out the possible buyers
and send a common document before finalizing the deal,” he said. This
will be a long process as Shell is a highly structured multi- national
The Bank of Ceylon has been appointed as the advisor to the
Government on this buy-out deal.
“The Bank would consider the financial strengths of Shell Gas and
advice the Government accordingly. The Government is seriously looking
at this deal exclusively with due diligence. However, a feasibility
study will be conducted before reaching a final decision,” BOC Chairman
Dr. Gamini Wickramasinghe said.
A number of companies have expressed interest in the Shell Gas
sell-out deal and we are working on it, Shell Gas (LPG) Finance Director
and Country Controller Rimoe Saldin said.
A number of local and international companies have shown interest in
the Shell company deal as it has operations in many countries. They will
be short-listed. However, no negotiations have commenced so far.
The negotiations between the Government and Shell company is expected
to take place shortly, Saldin said.
Shell recently said it is discussing with third parties as part of a
review of ownership options for most of the company’s liquefied
petroleum gas (LPG) businesses.
The scope of the review is the Shell Gas (LPG) businesses in France,
Belgium, Netherlands, Luxembourg, Denmark, Finland, Sweden, Norway,
Hungary, Poland, United Kingdom, Malaysia, Pakistan, Sri Lanka,
Philippines, Singapore and Argentina.
Shell owns 51 percent shares in Shell Gas Lanka while the Government
owns the balance.