Bumpy Ride

Prospective buyers are expressing reservations over government plans to hold majority stakes in the regional bus companies to be sold next week.
The 13 regional bus companies are due to trade on the Colombo Stock Exchange on Wednesday, with the government continuing to hold a majority 51 percent stake.

rnrnThe government expects to inject an estimated Rs. 3 bn in new investments to the regional bus companies.

rnrnFifteen companies responded to the original government offer to sell a 50 percent stake in these companies.

rnrnBut authorities later changed the advertised formula, offering a minority 39 percent stake with management control with 10 percent going to employees.

rnrnPolicy Planning Ministry Advisor R Paskaralingam told Lanka Business Report that the sale would however go through the Colombo Stock Exchange as planned on Wednesday.

rnrnThe sale was put off once before, to allow potential buyers to put up bid bonds.

rnrnBut some investors say they have strong reservations about inve