By Jithendra Antonio
Although the Government sealed the agreement on Shell this week by buying back 51 percent of Shell Gas Lanka Ltd. and 100 percent of Shell Terminals Lanka Ltd. (STLL) for US $ 63 million, the actual deal will only be finalised by November 15, a top official said
“Shell and the Government of Sri Lanka hope to complete the deal as soon as possible, and this is expected by November 15,” said outgoing chairman/managing director of Shell Gas Sri Lanka (SGLL), Walter Sanchez, responding to a question by The Bottom Line.
Sanchez, however, declined to say whether the deal is profitable for Royal Dutch Shell PLC for US $ 63 million stating, “This information is commercially sensitive information and cannot be shared.”
He said that since this is a share sale, all staff working for SGLL, STLL will be transferred to the new buyer but under the same terms and conditions.
As to whether Shell would continue to provide its expertise with any assistance to the local management, Sanchez was of the view that Shell believes it has developed a professional, cost efficient LPG business with strong growth opportunities run by a competent and well trained workforce in the country.
Although the Government sealed the agreement on Shell this week by buying back 51 percent of Shell Gas Lanka Ltd. and 100 percent of Shell Terminals Lanka Ltd. (STLL) for US $ 63 million, the actual deal will only be finalised by November 15, a top official said
“Shell and the Government of Sri Lanka hope to complete the deal as soon as possible, and this is expected by November 15,” said outgoing chairman/managing director of Shell Gas Sri Lanka (SGLL), Walter Sanchez, responding to a question by The Bottom Line.
Sanchez, however, declined to say whether the deal is profitable for Royal Dutch Shell PLC for US $ 63 million stating, “This information is commercially sensitive information and cannot be shared.”
He said that since this is a share sale, all staff working for SGLL, STLL will be transferred to the new buyer but under the same terms and conditions.
As to whether Shell would continue to provide its expertise with any assistance to the local management, Sanchez was of the view that Shell believes it has developed a professional, cost efficient LPG business with strong growth opportunities run by a competent and well trained workforce in the country.
However, when The Bottom Line queried about the issue between the Royal Dutch PLC and its existing island wide distributors in the country who were asking for a payout from the Dutch multinational before its exit, Sanchez said that ‘given this is a sale of shares in the company, the contracts between the distributors with the company will remain in place as at completion of the share sale and will continue to be governed in accordance with their terms’.
