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Five bidders keen on SLIC life and general insurance businesses

Five bidders keen on SLIC life and general insurance businesses

Daily FT: The Request for Qualification (RfQ) for the sale of the segregated life and general insurance business of Sri Lanka Insurance Corporation (SLIC) has attracted five bidders, four of which are local firms.
For Sri Lanka Insurance Corporation Life Ltd., those who responded to RfQ are LIC (Lanka) Ltd., Union Assurance PLC and Asiri Hospital Holdings PLC. For Sri Lanka Insurance Corporation General Ltd., the respondents are Fairfirst Insurance Ltd., and Euro Exim Bank Ltd., a global financial institution with Head Office in St. Lucia and the Representative Office in London.
The Government on 26 January, via international and local media called for RfQ from potential investors for the divestiture of its shares in the two insurance entities. The deadline for submission of proposals was on Wednesday.
The RfQs received were considered by the Opening Committee appointed by the Special Cabinet Appointed Negotiation Committee.
The SOE Restructuring Unit said the RfQs will be evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers in July 2023.
Alvarez & Marsal acts as the Transaction Advisor for the divestiture.

OSL take:
The restructuring process of the state owned enterprises (SOEs) launched by the government of Sri Lanka has presented some lucrative business/investment opportunities for foreign businesses/investors looking for opportunities in the South Asian region. With Sri Lanka’s economy on a growth path after facing challenging economic conditions, the opportunities presented by the country on its path to becoming a regional business hub, makes Sri Lanka the ideal business/investment destination for foreign businesses/investors. The interest shown by foreign businesses in the SOEs that have been identified for restructuring is indicative of the increasing business confidence in Sri Lanka’s growth path. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries have also added to Sri Lanka’s attraction as a regional hub. Given the growing business potential in Sri Lanka, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka including the SOE restructuring process.

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Article Code : VBS/AT/20240315/Z_5

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