Sri Lanka’s Laugfs Gas to list power subsidiary
ECONOMYNEXT – Sri Lanka’s Laugfs group is to list its renewable energy subsidiary Laugfs Power Limited with a reference price of 8.80 rupees an ordinary voting share, at a price-to-earnings ratio of 20 times.
The reference price for Laugfs Power non-voting shares is 6.90 rupees a share at a P:E ratio of 15.7 times, according to listing documents filed with the stock exchange.
Laugfs Power Limited is to be listed on the ‘Diri Savi’ or second board of the Colombo Stock Exchange.
It aims to list 335 million ordinary voting shares and 52 million non-voting shares.
The move is part Laugfs Gas Ltd. group’s efforts to focus on its core liquefied petroleum gas (LPG business by spinning off non-core units that include leisure and auto emission testing.
“LGL’s presence in diversified businesses has restricted specialised energy sector investors and regional funds in investing in LGL, whereas segregation will make LGL a pure play energy business and attract the said investors to invest in LGL,” the listing document said.
The segregated subsidiaries, including the power subsidiary, will be positioned to attract specialised investors interested in investing in these sectors and be able to enhance technical knowledge through strategic partnerships, it said.
(COLOMBO, 17 October 2019)