Nov 10, 2010 (LBO) - Sri Lanka's state-run Bank of Ceylon has beefed up its investment banking unit and is looking to win new business as the government is planning to sell down commercial enterprises in the stock market, a top official said.
"The investing banking division will engage in equity participation, mergers and acquisitions, corporate advisory, private equity the full gamut of capital markets," chairman Gamini Wickramasinghe said.
The division had been strengthened with senior staff.
"We have hired outside staff. So what we lacked we got from outside," Wickramasinghe said.
"Then we are hiring management trainees and over a period of time our trainees can take over. Until that time for two three years we are hiring outsiders."
The bank has hired analysts from Amba Research, an investment research outsourcing firm which has a unit in Sri Lanka.
Bank of Ceylon's investment banking division had evaluated a 63 million US dollar buy back of Shell Gas operations in Sri Lanka. The deal is expected be completed on November 15, with Sri Lanka Insurance due to buy it, according to official sources.
A future privatization of Sri Lanka Insurance itself is also one of the deals the Bank of Ceylon is eyeing.
The firm was ordered into government hands by courts, which reversed a sale to Harry Jayewardene's Distilleries group.
The government has to repay six billion rupees and profits made under Distilleries management, before taking final delivery of shares.
Bank of Ceylon also helped in the buyback of SriLankan Airlines from Emirates in which the bank itself took a stake of over 20 million US dollars. The government already had a majority 51 percent stake.
The firm is now in losses, but earlier reports indicated that it has been shopping around for possible foreign partners.
The airline has said it was looking to sell down a part of SriLankan Catering, a profitable unit.
"We are also looking at SriLankan Catering, as and when they are ready," Wickramasinghe said.
source - www.lbo.lk
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