POSTED AT 10:41 AM 08-03-2018
Three subsidiaries of LAUGFS Gas to list on CSE
Subsidiaries of LAUGFS Gas PLC, LAUGFS Power Ltd, LAUGFS Leisure Ltd and LAUGFS Eco Sri Ltd will be listed separately on the Colombo Stock Exchange (CSE) within the next three months, subject to necessary regulatory approvals from the SEC and the CSE, said H A Ariyaratne, Director, LAUGFS Gas PLC.
Once the segregation is completed by March 31, all different entities will be in a position to operate as independent companies from the financial year commencing April 1 and a person who owns a share of LAUGFS Gas will receive another three shares. As independent companies they will be more dependent on raising funds and having their own strategy formulation and attracting strategic investors which would enable capital infusion, expertise and technology into the business.
W K H Wegapitiya, Chairman of LGL addressing the media on Tuesday said they plan to summon an extra ordinary general meeting on March 20 to get the consent of its shareholders for the restructuring of its non-core businesses.
Wegapitiya said that over 80 percent of the construction work of the LAUGFS Terminals at the Hambantota Port has already been completed and they plan to commence operations in April-May.
“There was an initial misunderstanding with Chinese officials manning Hambantota harbour. However this has now been settled and the Chinese too have now understood the value and benefits of our project.”
The facility when complete will be the largest LPG import and export terminal in South Asia with a 30,000 MT LPG storage capacity. The Chairman said currently, they owned three ships for LPG transportation, and after the commission of the terminal, they will need seven more. Wegapitiya also said that the planned US$ 100 million expansion of LPG operations in Bangladesh and the setting up of Laugfs operations in Myanmar were also going according to plan.
Capital Alliance Partners Ltd Global Markets & Investment Banking Managing Director Deshan Pushparajah said the companies will be listed at the CSE by introduction and no shares will be issued.