Laugfs Eco Sri listing to be delayed until legal battle over

The Colombo Stock Exchange (CSE) has decided to push back the proposed listing of Laugfs Gas PLC’s former subsidiary Laugfs Eco Sri Limited until the legal battle between the company and Commissioner of Motor Traffic (DMT) is finalised. 

Laugfs Eco Sri Limited which is engaged in vehicle emission testing submitted an initial listing application with the CSE in 2018 along with two other Laugfs Gas PLC’s former subsidiaries, following the restructuring process of Laugfs Gas PLC where it transformed itself into a pure play energy company in order to enhance its business operations.

On 30th October 2019, Laugfs PLC was listed in the Diri Savi Board of the CSE. The listing applications of Laugfs Eco Sri Ltd. and Laugfs Leisure Ltd. are yet to get the nod from CSE. 

Laugfs Gas PLC, Group Managing Director, Piyadasa Kudabalage in a stock filing this week said the CSE had informed the company to delay the proposed listing until the ongoing litigation between Laugfs  Eco Sri Limited  and the Commissioner of Motor Traffic (CMT) in Commercial High Court is concluded.

“….the CSE 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 is 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 related to the company’s going concern,” Kudabalage stated.

However, he didn’t provide any specifics of the legal case while only noting that the case was delayed due to the pandemic. In addition to vehicle emission testing, Laugfs Eco Sri Limited also owns 25 percent stake in Laugfs Property Developers (Pvt) Ltd.