LAUGFS Eco Sri listing pending settlement of litigation

LAUGFS Gas PLC said that the proposed listing of its vehicle emission testing subsidiary will be done once the litigation between the latter and Commissioner of Motor Traffic (CMT) is concluded.

In a disclosure to the Colombo Stock Exchange (CSE), the company updated the status of the LAUGFS Eco Sri Ltd.’s proposed listing and the Introductory Document.

The draft Initial listing Application was submitted to the CSE initially in 2018 for comments/approval. As per CSE’s observations on the submissions of the same, additional information/clarification were provided several times.

Pursuant to the last communication had with the CSE in September, it has requested the company to submit an Initial listing Application once the ongoing litigation between LAUGFS Eco Sri, and Commissioner of Motor Traffic (CMT) is concluded.

LAUGFS in its latest disclosure said that the status pertaining to the litigation in the Commercial High Court is at the stage of filing of objections by the CMT and due to COVID pandemic the case was postponed and it is proceeding as of now.

It said the CSE in consultation with the Securities Exchange Commission had written to the company on the litigation matter which is quoted below:

“In the above circumstances, the CSE has decided that the Initial listing Application submitted by the company would be processed by the CSE only upon the aforesaid legal proceedings between LAUGFS Eco Sri Limited and CMT are concluded. This would ensure that adequate clarity is provided to the investing public with regard to the legal basis of operations of the company and also eliminate any potential uncertainties on the going concern of the company.”

Accordingly, LAUGFS said the CSE requested it to resubmit an Initial listing Application to them once all litigation between the company and CMT is concluded.