Mukesh Ambani’s Jio Platforms expresses interest of taking over Sri Lanka Telecom.
By: Staff Writer
January 15, Colombo (LNW): The telecom arm of Reliance Industries Jio Platforms,, has expressed interest in buying a stake in Sri Lanka Telecom PLC, the state-owned telecommunication company.
The financially-stressed Sri Lankan government is looking to privatize several sectors of the economy to raise money. Colombo had invited proposals from potential investors from November 10.
Post the deadline on January 12, the Sri Lankan government issued a press release, naming Jio Platforms, Gortune International Investment Holding Ltd, and Pettigo Comercio International LDA as the three potential bidders, adding that proposals will be “evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers”.
The island nation is also mandated by International Monetary Fund (IMF) programmes to push for privatisation of non-core sectors.
With Sri Lanka Telecom, Jio is eyeing a strategic foothold in the neighbouring market.
Brokerage BofA has pegged Jio Platforms’s valuation at $107 billion. BofA in a note said it expects Jio Platforms to continue adding subscribers this year while making deeper inroads with its advanced feature phone JioBharat and wireless broadband device JioAirFiber.
Three submissions in total were received earlier for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry disclosed yesterday.
Accordingly, Jio Platforms Ltd. in Gujrat, India, Gortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.
On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilization, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded recently.
The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023.
The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.