SOME OF GOVERNMENT’S SSL SHARES TO BE SOLD
By J. Brock (FINN)
Stanley Services is now having a major overhaul of the way in which it is run. As part of this, Government will be selling off, nearly 20% of its shares – those acquired in 2001 from S. and J.D. Robertson, to Lavinia Corporation. This will bring the shares Lavinia Corporation will be purchasing to 25%.
Cllr Mike Summers, Chairman of the Stanley Services board, said that the decision was taken at the Executive Council meeting that took place on Thursday, 27 February 2003, He confirmed that shares being sold were bought from Hogg Robinson around a year ago when the company was liquidated.
This means that Government is still the major share-holder of the Company at the moment with 45%. However, the re-structure programme could include selling all of Government’s shares to Falkland Islanders.
A number of other measures that will be taken during the restructure, including the creation of a Joint Venture between Stanley Services and Lavinia to undertake bunkering activities in the South-west Atlantic and the settlement of certain outstanding tax matters to the satisfaction of FIG. Also agreed was the extension the of Stanley Services exclusive licence to provide fuel for a further 10 years.
While debating the restructure, Government considered at a list of potential share holders and alternative arrangements, including non-exclusive fuel licensing and extending the licence on a year by year basis. Though discussed fully, none of those proposals were considered to be the best option.
"When making the decision, the board had in mind the need to secure regular and reliable stocks of fuel," said Cllr Summers. He continued that the past record of Stanley Services and Lavinia, the need to control fuel prices both onshore and offshore and overall net national benefit.
Cllr Summers will be interviewed on Tuesday’s edition of "One to One" which will be transcribed by 100X Transcription Service.
