SriLankan Airlines restructuring plan with the shortlisted private equity fund TPG may take over six months to arrive at a possible agreement, Deputy Public Enterprise Development Minister Eran Wickramaratne said.
Wickramaratne said discussions with regard to the subject of airlines is a complex matter to be dealt with.“There were eight bidders initially then it reduced to three and now shortlisted to only one party,” Wickramaratne said.
“It’s the private equity fund called TPG who is now doing the due-diligence. We have only selected them as a partner of SriLankan Airlines. Discussions with them will continue at least for six more months.”
Texas Pacific Group (TPG) which was launched in 1992 with the buying of Continental Airline in 1993 has invested in many airlines including American Airlines, Ryan Air and Mid-West Airlines and owns direct and indirect stakes in several leading airlines.
“It was among the shortlisted bidders for SriLankan in 1997 but we went for the Emirates partnership,” Wickramaratne said.
“We may have to bring in more than one company to revamp the current Airline and with TPG we can do so by bringing in another into SriLankan Airlines.”Sri Lanka is planning to sell up to 49 percent of SriLankan Airlines along with management control. (ZI)
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