Sri Lankan Government receives three RfQs to divest Sri Lanka Telecom shares
Daily FT: Three submissions in total were received for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry has disclosed.
Accordingly, Jio Platforms Ltd. in Gujrat, India, Gortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.
On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilization, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded recently.
The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023.
The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.
OSL take:
The interest shown by many leading international businesses in investing in Sri Lanka’s state-owned enterprises (SOEs) is indicative of the growing confidence among foreign businesses/investors in the ongoing economic activities in Sri Lanka. The country is also targeting at becoming an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries. The ongoing economic expansion has resulted in the growing demand for the country’s ICT industry to also increase its scope resulting in a host of new business/investment opportunities in Sri Lanka’s ICT and digital infrastructure development sectors. Given the growth and profits recorded by local businesses engaged in the telecommunication industry and the growing business potential in the industry, foreign businesses/investors could explore the growing business/investment opportunities in Sri Lanka’s telecommunication and ICT sectors.
| Article Code : | VBS/AT/20240118/Z_3 |