Sri Lankan Government Offers Emirates $55m to Buy Back SriLankan Stake
15 May 2010
COLOMBO ( Reuters ) – Sri Lanka has offered $55 million to buy back the 43.6 per cent stake Dubai’s Emirates airline holds in national carrier SriLankan Airlines, the island nation’s treasury secretary said on Friday.
Emirates, the Arab world’s largest
airline, had no immediate
comment, but earlier this week
had said it was willing to sell the
stake “at the right price.”
“Sri Lanka is going to buy it… $55
million is the price we have
indicated, ” P.B. Jayasundera,
secretary of the finance ministry
and the treasury, told Reuters in
an interview.
“The deal is almost done,”
Jayasundera said. “We are
looking for a strategic partner or
somebody from the government
to take that (the stake) and
maintain the commercial
character of SriLankan (Airlines). ”
He declined to say whether an
arm of the government would
take over the stake, or whether it
would be sold to an outside
partner.
The government will facilitate
the transfer “to Bank of Ceylon
or somebody who can basically
participate in a business, ”
Jayasundera said, referring to
the largest state-owned bank.
Source : Khaleej Times
Note that Emirates bought the SriLankan ( then Air Lanka ) stake in 1998, for $70 million. Emirates Airline President, Tim Clark, had previously stated that they will sell the 43.68% stake for around $150 million.
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