One Passenger

The first sale of a license to operate a taxi service, through a call option, ended with no competitive bidding as only one buyer came forward, raising doubts about the demand for the other licenses to be auctioned over the next eight days.

Senok Trade Combine was the only bidder at Monday™s auction where a call option was put on sale at the Colombo Stock Exchange on an all or nothing basis.

Senok group says it is planning to start operations within one year after importing the cars.

We have necessary infrastructure in place and that is why we have gone ahead with this project after studying the situation, Rajieve Fernando Senok Automobiles told LBO.

Senok says about 80 percent of the activities of the taxi services would be in Colombo, while the rest would come from outlying towns such as Negombo and Gampaha.

The taxi service licenses are auctioned on the CSE trading floor through a call option.

The value of one rupee in the call option represents ten million rupees.

Potential can up the bids for the call option in blocks of 50 cents (representing five million rupees) up to the value of five rupees, and in 25 cent bids thereafter.

The call option gives the right to the owner to buy the taxi