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SriLankan Airlines: No decision yet on who gets the deal
View(s):The five-member committee appointed to evaluate bids for SriLankan Airlines has held a series of meetings with the shortlisted parties but has not reached a decision on who should be recommended for the deal, an authoritative source said.
The parties are Super Group Partners, Peace Air and Texas Pacific Group or TPG. Super Group is a consortium comprising predominantly of Asian investors. The third, TPG, is an American company and one of the largest private equity investment firms in the world.
Peace Air is owned by businessman Gamini Wethasinghe. Its representatives have been canvassing openly for its bid, even offering a bonus of Rs. 100,000 for every SriLankan Airlines employee if it secured the deal. The company has pledged an investment of five billion euros.
“Meetings are ongoing with the bidders,” the source said, requesting anonymity. “Documentation is currently being corroborated or verified.” The committee was so intent on maintaining the transparency and integrity of the process that its members met the relevant parties only in a group.
Depending on the outcome of the meetings, a recommendation will be sent to the Cabinet Committee on Economic Management (CCEM). An initial valuation had allocated scores to the bidders based on various criteria but it is learnt that these will have no real bearing on who secures the contract. The lead manager for the project is National Savings Bank, assisted by audit firm KPMG.