Business leader Dhammika Perera is set to add diversified, unlisted LAUGFS Holdings Ltd., to his fast-expanding business empire.
The acquisition is via Dhammika’s latest investment holding Vallibel 3, which will maximise opportunities for 50:50 partnerships with companies which are professionally managed.
The Daily FT learns that an understanding has been reached between Dhammika and LAUGFS Chairman and Co-Founder W.K.H. Wegapitiya for the 50:50 partnership. Earlier, Dhammika pursued a strategy of acquiring 51% or more control in entities but is now open to 50% stake partnerships with well-managed and high-potential Groups of Companies.
Whilst 40% stake has been acquired from LAUGFS’ other Co-Founder and Deputy Chairman Thilak De Silva, the balance 10% is pending. Once completed, the two companies are to make a formal disclosure on the price and other details. Wegapitiya described Dhammika’s entry as collaboration and not hostile, as both share common origins and reflect the spirit of Sri Lankan entrepreneurship.
For Dhammika, the addition of LAUGFS comes hot on the heels of him acquiring control of East-West Properties PLC for Rs. 3.2 billion, as well as DHT Cement Ltd., for $ 20 million via Vallibel X.
In view of speculation, investors in the Colombo stock market late last week stepped up their interest in LAUGFS Gas PLC. On Thursday, LAUGFS Gas was third highest gainer percentage wise at 15% to Rs. 37.60, with 1.45 million shares traded for Rs. 54.36 million. On Friday, the share price gained to Rs. 40.20, up by a further 7% and for the week by Rs. 7.30, hitting a new 52-week high. Previous highest was Rs. 37.40. On Friday, 2 million shares changed hands for Rs. 84 million, and 3.5 million for the week for Rs. 139 million.
LAUGFS, which recently celebrated its 30th anniversary, has interests in over 25 industries employing 3,500 employees, and an annual turnover exceeding Rs. 160 billion across energy, retail, leisure, manufacturing, logistics, pharmaceuticals, engineering, and trading in Sri Lanka, Bangladesh, the UAE, USA, and Netherlands.
