Thu, 13 May 2021 Today's Paper

TPG pulls out of SriLankan Airlines bid talks

8 May 2017 10:04 am - 0     - {{hitsCtrl.values.hits}}

A A A

 

REUTERS: U.S. private equity firm TPG, one of three bidders short-listed to buy a 49 percent stake in state-owned SriLankan Airlines, has pulled out of talks about the potential acquisition, the Chairman of the national carrier said.
Sri Lanka has been looking to sell the minority stake in the airline along with management control, part of a broader move to reduce its holdings in state-owned firms and cut debt.
“After completing the due diligence process, regrettably TPG have informed us they will not pursue a potential investment in SriLankan Airlines,” Ajith Dias, Chairman of the carrier said in an internal memo to employees seen by Reuters on Friday.
“It is their opinion that allocating the human and financial resources to make the airline profitable will not realise sufficient returns, compared to the many other investment opportunities that are available to them,” he said.
Officials from TPG were not immediately available for comment.

TPG, Sri Lanka-based Peace Air and a Maldivian company had been short-listed from about nine bids for the 49 percent stake, including from U.S. investment manager BlackRock Inc. The government called for bids in July and had expected to award the restructuring process by end 2016 but it said in February the bids from the three short-listed companies were too low.
Dias also said the government was pursuing other options to find a partner and the airline should continue on the path of improving its financial and operational performance.The national carrier is struggling with colossal debt and decided to sell four new Airbus A350s after cancelling an order for four of the aircraft. It has also stopped some loss-making destinations to the Europe.
SriLankan Airlines was a profitable joint venture with Gulf carrier Emirates for a decade until the pair split in 2008. Subsequent mismanagement left the airline saddled with debt of about US$3.25 billion, according to the Prime Minister Ranil Wickremesinghe. SriLankan Airlines has attractive routes to India and analysts have said potential investors could be drawn to the prospect of turning around the carrier, which has about 21 leased Airbus planes.
The airline which has 7,000 staff, reported a net loss of Rs.16.33 billion for the year to March 31, narrower than its Rs.31.4 billion loss a year earlier, thanks to lower oil prices.
It last made a profit in 2009, a year after Emirates sold its stake. 

 

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

  Comments - 0

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




MeGha Primal Intake: A mega scam by few govt doctors ?

Days after the Dhammika Paniya was rejected as a cure against COVID-19, news

DMK Chief M. K. Stalin Becomes Tamil Nadu Chief Minister

“Stalin Thaan Varraaru, Namakku Vidivu Tharraaru” (Stalin is only coming

Chemical Fertilizer Ban: A radical political decision that is not too practical?

Soil makes up as the home to millions of insects, microorganisms, recycle mat

New Year COVID wave: Did MOH and Government cause a delay in predicting B.1.1.7?

The daily number of cases testing positive for COVID-19 in Sri Lanka is neari

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.