Govt acquires Shell
*Signals end to privatisation era
*Purchase price US $ 63 m
*Forty nine percent stake to be listed
Chaminda PERERA
The Government in a major move to close the chapter of privatizing
State property in the country, yesterday decided to take over Shell Gas
Lanka Limited and Shell Gas Terminal Limited costing US$ 63 million.
The Colombo Gas Company was the first State entity which was
privatized by the Government that came into power after 1994 and 51
percent of its stake is held by the Shell Gas Lanka Ltd while the State
holds the rest of 49 percent shares.
According to Mass Media and Communication Minister Keheliya
Rambukwella, the Cabinet of Ministers have given approval for the
purchase of 51 percent stake held by the Shell Gas Lanka Limited and the
Shell Gas Terminal Limited.
The Government will fully own the company with the purchase of 51
percent.
Minister Rambukwella said the Government will list 49 percent of its
stake in the Colombo Stock Exchange or make a public share issue to
allow an opportunity for the private sector to invest in the company.
A high level negotiating committee chaired by the Secretary of the
Prime Minister D.M. Jayaratne has recommended the purchase of Shell Gas
Lanka Company and the Shell Gas Terminal Company to the Government for
US$ 63 million. This committee was appointed by the Cabinet.
The transaction is to be financed by the Bank of Ceylon, People’s
Bank, National Savings Bank and Sri Lanka Insurance Corporation.
He said the Government will hold the management and the decision
making powers with the purchase of 51 percent of shareholding owned by
the Shell Gas company. The Minister stressed that the Government led by
President Mahinda Rajapaksa has ended an era in which State properties
were sold out to private sectors at penny using different terminologies.
He said the Government has begun taking over State properties
privatized by the successive Governments in the past for the benefit of
the people of the country. |