Leading local corporate Laugfs Gas PLC will be segregated, with three out of its six subsidiaries to be individually listed on the Colombo Stock Exchange (CSE) from April 1 this year.
Laugfs Power Ltd, Laugfs Leisure Ltd and Laugfs Eco Sri will be separately listed on the CSE to maximize the valuation of each unit, chairman of Laugfs Gas PLC W.K. H. Wegapitiya told the media on Tuesday at a briefing held at the Hilton Colombo Residencies.
‘Following the un-relatable existence of businesses within the conglomerate, the decision has been taken by the board of directors approving the restructuring initiative in a move towards profitability, he said.
‘The restructuring of the company after strategically re-aligning the group will be beneficial to the shareholders and prospective investors, he said.
‘When Laugfs Gas PLC was listed in the CSE, many local and foreign companies were eyeing to invest. Unfortunately we had our own legacy issues that discouraged foreign investors to associate with us. Within our group there were unrelated businesses, Wegapitiya said.
“When energy companies approached they felt no interest about the other sectors such as leisure, power, emission and so on. There were debates within them where we couldn’t give the highest benefit to our shareholders, he added.
He also mentioned that investors prefer to go into specific business streams, particularly energy, which has multiple earnings. Segregation will enable Laugfs Gas PLC to specialize in specific areas, not only in energy, but power, leisure and so on that will standalone as separate entities”.