Laugfs Gas to segregate three non-core subsidiaries and list via introduction

Friday, 29 December 2017 00:00 - - {{hitsCtrl.values.hits}}

Laugfs Gas (LGL) yesterday disclosed that three of its non-core business subsidiaries would be segregated from the group and listed on the Colombo Stock Exchange via introductions.

The three firms are Laugfs Leisure Ltd, Laugfs Power Ltd. and Laugfs Eco Sri Ltd.

They will be listed by way of an introduction on the CSE with the subsidiaries having a mirrored shareholding to LGL. The firms will be directly held by the shareholders of LGL in the same proportion of shares held by them in LGL.

All sub-subsidiaries held by three companies will continue to be held by the respective companies.

The segregation, to be effected in terms of an “arrangement”, is subject to approval by Court under Section 256 of the Companies Act of 2007, as well as shareholders. Since the “arrangement” involves a restructuring of the stated capital and reserves of the company, a shareholder nod will be required for the same.

The subsidiaries to be held by LGL post-restructuring are LAUGFS Maritime Services Ltd, LAUGFS Terminals Ltd, SLOGAL Energy DMCC, LAUGFS Gas (Bangladesh) Ltd. and LAUGFS Property Developers Ltd. (holding company of the head office building).