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| Sunday, 3 November 2002 |
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Wheel of fortune moves for bus companies A UK consortium on Thursday became a major player in Sri Lanka's transport sector by purchasing the 39 per cent equity stakes in six peoplised transport companies for Rs. 1.45 billion. The purchase of the bus company stakes by the Ibis Transport Consultants, the only bidder, is one of the single largest investments in Sri Lanka. Transbus International will provide technical collaboration to Ibis. The Colombo Stock Exchange (CSE) provided its Automated Trading System for this transaction. This does not constitute a listing of the six bus companies, a CSE statement said. The Colombo Metropolitan Bus Company Ltd (sale value Rs.432.2 million), Mahanuwara Bus Company Ltd (Rs.189.6 m), Kalutara Bus Company Ltd (Rs.147.1 million), Gampaha Bus Company Ltd (Rs.251.2 m), Sabaragamuwa Bus Company Ltd (Rs.249.8 million) and the Rajarata Bus Company Ltd (Rs.147.1 million) are the six companies. Ibis, which has transport interests worldwide, is expected to modernise the bus fleets and operations in addition to its capital investment. Some buses are likely to be imported from the UK. Enhanced training will also be provided to the staff, who have been assured that their jobs will be safe. But Ibis is initially expected to employ some expatriate staff to manage the operations. Industry analysts said Ibis' commitment indicated growing confidence in Sri Lanka as an investment destination, especially in the context of the peace process. Ibis executives who were present at the CSE said they were confident of sustained growth in Lanka's transport sector in tandem with economic growth and peace prospects. Its local partners are Hatton National Bank, HNB Stock Brokers (Pvt) Ltd and Free Lanka Trading Co. Ltd. Local bus builder Latec, through its subsidiaries Wesco and Kesco, will work closely with Ibis. The CSE said that settlement in respect of the transactions will not take place through it. The purchaser will sign an agreement with the Government, which will include payment terms. |
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