Sri Lanka Laugfs Gas mulls tie-up with strategic partner
ECONOMYNEXT – Sri Lanka’s Laugfs Gas group, which supplies liquid petroleum gas, is considering a tie-up with a strategic partner with similar interests and assets, following its restructuring last year.
Group chairman W K H Wegapitiya has said the firm is confident the new structure will drive growth of the energy group to new heights as it set sights on growth in the region, with the group expanding to Bangladesh.
The restructuring of Laugfs Gas group in March 2017 brought its core LPG assets under one entity and spun off other units like power plants, hotels and emission testing into separate companies.
The move would help attract investments from potential strategic partners and foreign funds, the company said.
Wegapitiya said at the time that “in the next six months big changes are coming” and that a “lot of new things will happen after the restructuring.”
The LPG business in particular was expected to benefit from the restructuring by attracting foreign strategic investors with specific knowledge in the energy segment.
“Changes made during the year transform our identity from a diversified conglomerate to an energy group, giving us the option of courting a suitable strategic partner with similar interests, technical expertise and networks to propel our future growth,” Wegapitiya has told shareholders in the company’s 2017-18 annual report.
“The board is deliberating the options available for growth at present and will keep you informed when there is a higher degree of certainty about our way forward.”
Wegapitiya said the group’s current structure with a fairly broadbased presence provides it significant advantages for growth in the region.
“We will continue to explore new markets and opportunities to drive growth,” he told shareholders.
(COLOMBO, June 11, 2018)