Loss-Making SriLankan Airlines To Enter Final Stages Of Disinvestment Bid (Image: X.com/flysrilankan)
The Government owned SriLankan airline’s current plan of going private, has made many airlines show their keen interest at picking up the to-be divested shares. These airlines that have showed their interest in acquisition include Indian companies as well as other companies from around the world. The decision to privatise and the request for the same was made by the Sri Lankan government earlier this month.
The Sri Lankan Government which has an ownership of over 99 percent of stake in the airline has hopes to bring a closure over the sale by next year, in June, the businessline reported. An official who was in the know said that interests were being shown by companies in both, the aviation field and other fields. The initial phase had almost sixteen companies bidding, while towards the final round of matters, only three companies have sustained, say reports.
As per Sri Lanka’s Sunday Times report, Adani Group, the Indian giant, is said to figure in the final round. If true, the Adani Airport Holdings, which is a part of Adani Group is the entity which would be bidding the sale. As of now, nine of India’s airports are managed and operated by the Adani Group. With this, the Adani Group is thought to be eying the SriLankan airlines for further expanding their expertise in aviation, reports said.
The initial round of deliberation on the sale deed had companies from India which included Tata Sons Groups. A report on this in September this year had showcased Tata Sons and Emirates as possible companies which could take over SriLankan airlines. The airline companies, Fly Emirates, Etihad Airways now feature among the companies named in the final round.
The SriLankan airlines is a direct undertaking of the Sri Lankan government. The move to disinvest shares has been seen as a decision to counter the ongoing economic distress that the country is in as of now. Interestingly, the investment opportunity has featured the country’s strengths, among which, the potential of the country to become a hub which could act as a connecting agent between India and other countries in South East Asia and also with Australia had seen mention. Sri Lanka’s proximity to India, which is one of the huge, potential domestic market for aviation is also understood from the flyer. This is expected to bring in more value to the sale deed and also higher economies of scale.
