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Thursday, 4 November 2010 07:09 - - {{hitsCtrl.values.hits}}
The Government yesterday formally took full control of the Shell Gas Lanka Ltd., in a deal worth US$63 million in addition to rebranding it as Litro reaffirming the demand for LPG would soar rapidly in tandem with post-war growth.
The agreement was signed yesterday that resulted in the government purchasing 51% shares in Shell Gas Lanka Ltd (SGLL) and 100% of Shares in Shell Terminal Lanka Limited. In respect of the SGLL agreement, the balance 49% of shares will be with the Sri Lanka Insurance Corporation as in the past.
The acting Chief Executive Officer will be Piyadasa Kudagallage in the Interim Management Board until the Board of Directors are appointed in consultation with the President, scheduled to take place on 15 November. It will also have a name change that will be converted to LITRO Gas.
With the accelerated pace of development work initiated, Treasury Secretary Dr. P. B. Jayasundera said the LPG usage would no doubt be a vital component in the sphere of development.
Having thanked Shell for makings things easy in transacting this business in a professional and flexible manner, Jayasundera said the employees will be treated appropriately conducive to the agreement and their welfare will be looked after. “This transition is for the betterment of all,” he added.
A Government spokesperson said the LPG business could now be expanded into new regions in parallel with other infrastructure developments and that the Shell LPG buy-back was a natural step in further developing the country and building on the infrastructure and expertise already set up by Shell. In addition, the Government and Shell will in the future jointly carry out a re-branding phase.
The agreement was signed by Dr. Jayasundera and Sri Lanka Insurance Corporation Chairman Gamini Senarath on behalf of the government and General Manager Andrew Crowe on behalf of Shell Gas International Company.
Shell Gas Company notes the “sale of Shell’s share in the Sri Lanka LPG business is consistent with Shell’s strategy to concentrate its global downstream footprint into fewer, larger markets.”
Shell believes this represents an attractive opportunity for the Government of Sri Lanka to acquire a safe and cost-efficient LPG supply, logistics and marketing business with strong growth potential, run by a competent and well trained workforce.
