Sherisha Technologies and Supreme Global Consortium form alliance to acquire SriLankan Airlines
The Morning: In a groundbreaking development, the Sherisha Technologies and Supreme Global Consortium has fortified its bid to acquire Sri Lankan Airlines with the inclusion of several high-profile strategic partners. This move comes as the consortium provides clarifications to the State-owned Enterprises Restructuring Unit (SOERU) and notifies the Sri Lankan Government of this significant advancement.
Leading the charge in this ambitious endeavour is Terminal Holdings LLC from Abu Dhabi. Owned by the illustrious his excellency Sheikh Tahnoon bin Zayed al-Nahyan, one of the wealthiest individuals globally, Terminal Holdings brings a wealth of expertise and financial muscle to the consortium. Sheikh Tahnoon is a pivotal figure in Abu Dhabi’s business landscape, known for his substantial contributions to expanding the emirate’s business interests worldwide. His portfolio spans multiple sectors including energy, finance, and aviation, with a net worth estimated in the billions of dollars.
Terminal Holdings’ involvement will enhance operational and commercial efficiencies in Sri Lankan Airlines through airline advisory, ground handling operations, and in-flight catering services. Furthermore, their advisory role is set to introduce best practices in airline management and operations, significantly benefiting Sri Lanka’s aviation sector and contributing to the nation’s economic growth.
In a bold move, the consortium has secured a partnership with Challenge Aerospace LLC and Emirates Aerospace LLC, committing to supply 20 Airbus aircraft (9 narrow-bodied A320s and 11 wide-bodied A330s) within two years of operation.
This bold initiative is coupled with a commitment to provide up to $ 300 million worth of aircraft spares, significantly enhancing the consortium’s financial capability post-acquisition. The establishment of a Maintenance, Repair, and Overhaul (MRO) facility in Sri Lanka will cater to the growing regional demand, further strengthening the nation’s aviation infrastructure.
This substantial financial backing highlights the consortium’s ability to secure large-scale funding and strategic partnerships, laying a solid foundation for the revitalisation of Sri Lankan Airlines.
Adding to the consortium’s robust financial framework is the support from MBS Global Investments, the investment arm of the Private Office of Sheikh Nayef Bin Eid Al Thani. MBS Global Investments is renowned for its extensive network and investment expertise, particularly in fintech, green technologies, real estate, logistics and aviation. The backing of MBS Global Investments, with its ties to the Qatar royal family and access to sovereign wealth, provides an added layer of reliability and financial strength. This support underscores the consortium’s ability to leverage Qatar’s immense wealth and commitment to large-scale, impactful investments.
As previously announced, MMAG Holdings Berhad’s subsidiary, MMAG Aviation Consortium SDN BHD (MAC), continues to play a crucial role in the consortium. Their contributions include establishing a robust cargo feeder network for Sri Lankan Airlines, assisting in comprehensive restructuring efforts post-acquisition, and leveraging Sri Lanka’s strategic geographic position to enhance its capacity as a global air cargo hub. This partnership is set to significantly advance Sri Lanka’s air cargo landscape.
These strategic alliances, formed within a short span during the Expression of Interest (EOI) process, underscore the consortium’s commitment and capability to achieve remarkable results. Despite the current economic challenges facing Sri Lanka and the state of the airline, the consortium has demonstrated its ability to secure strategic partners and large-scale funding.
At the end of the EOI stage, the Sherisha Technologies / Supreme Global Consortium has proven its potential to transform Sri Lankan Airlines into a source of national pride and global recognition.
This initiative is a testament to the consortium’s vision and capability to deliver on its promises, paving the way for a brighter future for Sri Lanka’s aviation industry. The strategic moves by the Sherisha Technologies / Supreme Global Consortium marks a significant milestone in the acquisition process of Sri Lankan Airlines, promising a transformative impact on the nation’s aviation sector.
OSL take:
Sri Lanka’s ongoing programme to restructure state-owned enterprises (SOEs) has presented a host of new business/investment opportunities. The partnership between Sherisha Technologies and Sri Lanka’s Supreme Global is indicative of the increasing opportunities for local businesses to form partnerships with foreign businesses/investors to explore the expanding business/investment opportunities in Sri Lanka. The ongoing economic activities and the overall expansion of the country’s economy as it is moving towards becoming a regional hub have also attracted the attention of foreign businesses/investors who in turn are on the lookout for business/investment opportunities in Sri Lanka. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries along with the many promotional campaigns being carried out by local authorities in foreign markets have also added to Sri Lanka’s attraction as an emerging business/investment destination. Given Sri Lanka’s growth and business potential, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka while also looking at forming partnerships or joint ventures with local businesses with the aim of further expansion.