Sri Lanka’s Laugfs Group looking at a tie-up with a strategic partner to explore new markets and opportunities
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, a local media report stated.
Group Chairman, W. K. H. Wegapitiya has reportedly 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.
According to reports, 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 media report quoting the Company states that the move would help attract investments from potential strategic partners and foreign funds.
Wegapitiya has 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.”
“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 reportedly 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.”
“We will continue to explore new markets and opportunities to drive growth,” Wegapitiya has added.
The continuous expansion recorded by a Sri Lankan company like the Laugfs Gas Group is indicative of the growth potential of local companies. Laugfs Group has that commenced business as a supplier of liquid petroleum has now diversified into many sectors like retail marketing, leisure as wells as power and energy. Foreign businesses/investors could look at investing in such local business entities or form joint ventures as well.
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