NEW JERSEY's Safesea is still on track to acquire state-owned shipping Corporation of India, but the Sri Lanka state-owned Ceylon Shipping Corporation has now expressed interest in acquiring a 40 per cent stake, reports the Times of India.,
While Safesea has been shortlisted and allowed to carry out due diligence, it has yet to submit a financial bid because New Delhi continues to extend the deadline for submission of bids.
As per the proposal of Safesea, Ceylon Shipping Corporation could be run in a public-private partnership model.
Sources familiar with the contents of the proposal said that Safesea has proposed that it will hold a 40 per cent stake in Ceylon Shipping Corporation while the Sri Lankan government will hold another 40 per cent stake. It has proposed that 20 per cent stake will be offloaded to public investors.
No financial aspects have been mentioned in the proposal because the talks are said to be preliminary.
Safesea confirmed it has made an investment proposal to Ceylon Shipping when contacted.
'We have received Safesea's proposal. It is in the interest of the company. But we will have to approach the relevant ministry for taking it forward,' said WS Weeraman, chairman of Ceylon Shipping Corporation.
Ceylon Shipping Corporation was established in 1971 and has been a key player in transportation of goods from Sri Lanka. As the country has a deep and wide port, it has been a favoured route for ships transporting goods across continents.
The company is seen as an attractive target because it can offer feeder services and port-related logistics services to global shipping lines.
However, the company is facing a financial crunch and has been short of cash to run its operations.
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While Safesea has been shortlisted and allowed to carry out due diligence, it has yet to submit a financial bid because New Delhi continues to extend the deadline for submission of bids.
As per the proposal of Safesea, Ceylon Shipping Corporation could be run in a public-private partnership model.
Sources familiar with the contents of the proposal said that Safesea has proposed that it will hold a 40 per cent stake in Ceylon Shipping Corporation while the Sri Lankan government will hold another 40 per cent stake. It has proposed that 20 per cent stake will be offloaded to public investors.
No financial aspects have been mentioned in the proposal because the talks are said to be preliminary.
Safesea confirmed it has made an investment proposal to Ceylon Shipping when contacted.
'We have received Safesea's proposal. It is in the interest of the company. But we will have to approach the relevant ministry for taking it forward,' said WS Weeraman, chairman of Ceylon Shipping Corporation.
Ceylon Shipping Corporation was established in 1971 and has been a key player in transportation of goods from Sri Lanka. As the country has a deep and wide port, it has been a favoured route for ships transporting goods across continents.
The company is seen as an attractive target because it can offer feeder services and port-related logistics services to global shipping lines.
However, the company is facing a financial crunch and has been short of cash to run its operations.
SeaNews Turkey
