LAUGFS buys Softlogic Capital
View(s):By Duruthu Edirimuni Chandrasekera
LAUGFS Holdings, two years after its Initial Public Offering (IPO) has acquired Softlogic Capital, a leasing company, from Softlogic Holdings PLC, in a bid to enter the financial sector, officials said.
“We concluded this transaction on 31st December for Rs 103 million,” W.H. Wegapitiya, Chairman LAUGFS Holdings Ltd told the Business Times on the sidelines of a media conference to announce the 9001:2008 certification to LAUGFS Corporation (Rubber) Ltd on Friday. He said they plan to infuse Rs 400 million and change its name to LAUGFS Capital by next month. He added that the company is bullish on the financial sector and also leisure sector is a big part in their portfolio.
“Once the Chilaw resort hotel is completed, we will scout for other sites for more suitable projects,” he said. The Chilaw hotel was originally a Rs. 700 million 100-room hotel, but now the costs have risen to Rs. 1 billion, Mr. Wegapitiya said. After completing this, “we’ll look for more sites to build hotels,”He added that the company has plans to complete some leisure projects in time for the 2016/17 season and also expand into managing hotels that fall under the “Small Luxury Sector” category. The company at present manages Emerald Bay Hotel, a 50 room property and also Temple Tree and Spa, a small luxury hotel consisting of 10 rooms – both in Induruwa.
LAUGFS Gas’s Maya Avenue building complex which was initially planned as a condominium complex was converted to an office complex as the demand for the latter was greater. “This town is being developed as a commercial area and it was prudent to change it to a commercial complex and this will be completed in 2013,” Mr. Wegapitiya said, adding that this will cost Rs. 450 million.
Mr. Wegapitiya said that this year LAUGFS, whose main business is in import, storage and distribution of Liquefied Petroleum Gas (LPG) and related products expects a 20 per cent growth in the gas market. Laugfs currently has a distributor network of 1,600 dealers across the island.
By 2015, the company expects to have 50 supermarkets and hopes to increase it up to 100 by 2020.
Mr. Wegapitiya added that LAUGFS will change its super marketing into a different scope such as stand alone large units. “We see immense growth here,” he said. He said Laugfs has grown into some 18 firms in diversified sectors within the last 15 years since it started. “This year we’ll only go for consolidation,” he said.
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