The Government, close to a possible deal with Shell Gas Lanka’s (Shell) parent, Royal Dutch Shell to buy its 51% which will see them complete owners of the entity, will subsequently sell 49% of Shell through the Colombo Stock Exchange to a local firm to manage and retain 51% control, according to informed parties.
The Government now has a 49% stake in Shell. Laugfs Holdings Chairman, W K H Wegapitiya said they are willing to take over the management of Shell Gas Lanka Ltd.
“Historically the government has failed to manage such entities and it’s easier for firms such as (Laugfs) to compete with them (if they decide to manage it on their own)”, he said.
“The company will expand their brand to the international arena in the near future,” Wegapitiya said. Shell Gas Lanka Finance Director and Country Controller Rimoe Saldin said since negotiations with the Government are in the process, it is too early to comment on the final result.