ECONOMYNEXT – Sri Lanka’s Laugfs Gas Plc, said it had exited from its Bangladesh unit and will use the sale proceeds to settle debt.
A 69 percent stake in Laugfs Gas (Bangladesh) Ltd (LGBL) made up 2,645,203 million shares was sold for UDS 16.1 million, the firm said in a stock exchange filing.
Another 31 percent stake held by Dubai-based Slogal Energy DMCC, which is also a Laugfs unit was sold for UDS 7.254 million, the company said.
“The above proceeds are net of LGBL debt and will be used to reduce the debt exposure of the group,” the firm said.
Laugfs Gas started to get into difficulties after a the so-called Yahapalana administration dropped a court directed pricing formula for gas soon after being elected and forced gas distributors to run losses.
Sri Lanka’s interest rates have rocketed after macro-economists in the country printed money to suppress interest rates and triggered the worst currency crises in the history of the island’s intermediate regime central bank. (Colombo/Nov16/2022)