Three bidders shortlisted for Larfarge deal | Daily News

Three bidders shortlisted for Larfarge deal

 

Out of all the bidders in the fray to purchase LarfargeHolcim’s Sri Lankan Operations, three parties have been asked to come to London next week for negotiations, a government source told the Daily News yesterday.

He said the three bidders chosen include prominent businessman Harry Jayawardena, Nandana Jayadewa Lokuwithana, a Dubai based Sri Lankan businessman who purchased Ceylon Steel Corporation at Oruwala and alleged front man of former President Mahinda Rajapaksa, and ‘China Resources Cement Holdings Ltd’.

“The negotiations are not done by the company, but by an organisation on behalf of the company. The organisation has been asked to consider the best price and immediate payment after the deal during the negotiations,” the source said.

Asked on the speculation of the overvalued bid by the Chinese Company, the government source said the deal has not yet been finalised, adding that as of his opinion Harry Jayawardena also has a fair chance on it.

He said a proposal was made to the Economic Affairs Committee to invest the money in the Divi Neguma fund to purchase the Holcim Lanka to the government, but that proposal did not proceed, adding that time has already run out to proceed on it now.

Holcim Lanka was a state-run company before privatisation two decades back. It is the only integrated cement plant in Sri Lanka and its assets include two packing plants in Galle and Trincomalee ports, Puttalam cement factory and a grinding plant in Galle.

Contacted by the Daily News, Industry and Commerce Ministry Secretary T.M.K.B.Tennakoon said whoever the buyer may be, the land would still be owned by the Sri Lankan government.

“The Sri Lankan government’s agreement was with Holcim, and after its divestment the buyer will have to enter into a new agreement with the government. The limestone quarry in Puttlam belongs to the Cement Corporation and it had been leased out to the company. Whoever the winning bidder may be, he will have to pay the lease and for the mineral resources of the country,” he said.


 

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