Six state bus companies were sold to a British consortium on Monday for a deal worth over Rs. 1.4 bn.
Treasury Secretary Charitha Ratwatte and IBIS Managing Director, the investor who bought the bus entities last October, Ian Barrette signed off the deal at the Public Enterprise Reform Commission (PERC) office.
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rnUnder the much controversial deal, IBIS takes over a 39 percent stake and the management contract to run Colombo Metropolitan Bus Co. Ltd, Gampaha Bus Co. Ltd, Kalutara Bus Co. Ltd, Mahanuwara Bus Co. Ltd, Sabaragamuwa Bus Co Ltd and Rajarata Bus Co Ltd.
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rnThe administration of the companies will be handed-over to IBIS on April 20.rn
rnBefore the divestiture, IBIS had put up a Rs. 70 mn bid bond equivalent to five percent of the minimum bid price.
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rnIBIS was thereafter asked to pay 60 percent of the entire bid value, which was Rs. 1,419 mn as equity to take up the management of the companies.
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rnAfter much delay, IBIS paid up through a Letter of Credit issued in favour of th