Nov 08, 2010 (LBO) - The Sri Lankan government will sell shares in a liquid petroleum gas business it acquired after buying out Shell for 63 million US dollars within three months, a senior Treasury official said.
State-run Sri Lanka Insurance Corporation will fund the government buy-out of Royal Dutch Shell, B M S Batagoda, director general of the public enterprises department of the finance ministry told Vimasuma.com, our sister news website.
The government is buying back a 51 percent stake of Shell Gas Lanka and 100 percent of Shell Terminal Lanka, a storage firm, from Royal Dutch Shell. It already owns 49 percent of the gas unit.
The government hopes to make the payment and complete the deal, signed last week, by November 15, Batagoda said.
"The payment for the Shell shares will be made entirely by Sri Lanka Insurance Corporation," he said.
"After the takeover is complete the government will appoint a board of directors to Litro gas company and within three months issue shares to the public. The government will retain the majority stake and management control and divest 49 percent to the public."
Batagoda also said Shell Terminals Lanka will not be made a common user facility but instead be operated by Litro, which will also import, store and distribute LPG.
Gamini Senarath, chairman of Sri Lanka Insurance Corporation, and additional secretary to the president, was appointed chairman of Litro soon after the deal was signed.
source - www.lbo.lk
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