Committe recommends bidder to SriLankan deal

 Authoritative sources said the re-orientation committee appointed to recommend a bidder for SriLankan Airlines has submitted a report to the government. 

BNP Paribas and KPMG are the financial and transaction advisors on the airline’s restructuring.

The parties are Super Group Partners, (a consortium comprising predominantly Asian investors) Texas Pacific Group/TPG (with interests in Maldives and Singapore) and Sri Lankan investor Peace Air.

Peace Air held three press conferences in Colombo last month and announced that their bid was for US $ 5.5 billion and have also sent a ‘Swift’ via Deustche Bank confirming this amount.

Its Chairman Gamini Wethasinghe also spelled out their rollout plan and said they plan to appoint one from each Trade Union to their Board. They also said the fleet will be increased to 50 in one year and all current lease agreements would be terminated.

Srilankan Airlines reported a net loss of 16.33 billion rupees ($112 million) for the year to March 31, narrower than its Rs 31.4 billion loss year earlier on lower oil prices. It last made a profit in 2009, a year after Emirates sold its stake. Emirates acquired a 40% stake in SriLankan for $70 million in 1998 and increased its shareholding to 43.6%, with the government holding a 51% majority.