The Board of Directors of Lanka IOC PLC, (LIOC) has approved the formation of a Joint Venture with Ceylon Petroleum Corporation (CPC).
This was disclosed by Lanka IOC in a stock exchange filing. CPC will hold a 51% stake while LIOC would hold the remaining 49% shares. The share price of the company has risen sharply in anticipation of a successful joint venture.
Given the high indebtedness of its only competitor, the company is expected to reap significant benefits over the long term.