SriLankan Airlines: Three bidders to meet Cabinet committee

Three bidders shortlisted for a management stake in cash-strapped SriLankan Airlines will hold discussions with a Cabinet committee this month to clarify, among other things, their strategy for the national carrier.

“The shortlisted parties will be spoken to by a committee appointed by the Cabinet,” an authoritative source said. Depending on the outcome of the meetings, a recommendation will be sent to the Cabinet Committee on Economic Management (CCEM).

The parties are Super Group Partners, Peace Air and Texas Pacific Group or TPG. Super Group is a consortium comprising predominantly Asian investors. It includes Maldivian involvement but is not, contrary to earlier reports, connected with Trans Maldivian Airways or the Singaporean ground- handling firm SATS. The Group's lawyer said it was a private company registered in Sri Lanka.

Peace Air is owned by businessman Gamini Wethasinghe but there are no details about its source of funding. The third, TPG, is an American company and one of the largest private equity investment firms in the world.

“The process will be completely transparent, authentic and carried out to secure the best possible deal for the Government and for the airline in terms of protection of brand value and national carrier status,” the source said. “There will be no compromise on those parameters.”

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. “We have not come to a stage where it can be determined that one is ahead of another,” the source said. “There is a long and extensive process to be carried out, including verification of documents.”

A host of other factors, including origin of funds and identity of respective consortium partners, are yet to be studied. The lead manager for the project is National Savings Bank, assisted by audit firm KPMG.