Dhammika adds LAUGFS to his growing business empire

• To acquire 50% of LAUGFS Holdings via Vallibel 3, pursuing new model of 50:50 partnerships eyeing new professionally well-managed Groups of Companies
• Starting with modest beginnings, 30-year-old LAUGFS has emerged as multinational conglomerate with 25 subsidiaries commanding turnover of over Rs. 160 b
• Remains Sri Lanka’s only integrated energy company with diversified interests, including overseas operations

By Nisthar Cassim

Vallibel Group Chairman Dhammika Perera

LAUGFS Chairman W.K.H. Wegapitiya

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. Hitherto, 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 39% 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.

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.

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.

His business empire includes Sri Lanka’s most diversified conglomerate Hayleys PLC, which includes several other listed companies such as Singer PLC, his first investment holding company Vallibel PLC, which owns stakes in Delmege Ltd., Royal Ceramics PLC, and Lanka Tiles PLC, whilst holding key stakes in Sampath Bank PLC, Pan Asia Banking PLC, LB Finance, and Vallibel Finance.

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 Gas has evolved from a Liquefied Petroleum Gas (LPG) importer into a leading regional energy provider, supported by LAUGFS Maritime, which operates a fleet of LPG cargo vessels, and LAUGFS Terminals, which manages one of Southeast Asia’s largest LPG transshipment facilities. LAUGFS Power drives the country’s renewable energy agenda through hydro and solar projects, while LAUGFS Rubber stands as a globally recognised exporter of solid tyres to over 50 countries. LAUGFS Supermarkets continues to redefine convenience in the retail sector with a network of 40 outlets, including Sri Lanka’s first 24/7 supermarket. 

LAUGFS Eco Sri reinforces the Group’s environmental commitment with 240 vehicle emission testing centres, and LAUGFS Leisure promotes Sri Lankan hospitality through its two luxury resorts, Anantaya Resort & Spa Chilaw and Anantaya Resort & Spa Passikudah. LAUGFS Lubricants, Sri Lanka’s first home-grown lubricant brand, has successfully established operations overseas.

The Group’s diversified portfolio further includes LAUGFS Petroleum, one of the country’s top petroleum retailers, LAUGFS Car Care, providing trusted automotive services through 10 countrywide centres, LAUGFS Engineering, delivering advanced mechanical, electrical, and construction solutions, LAUGFS Life Sciences, poised to strengthen Sri Lanka’s healthcare sector with Large Volume Parenterals (LVPs) production at its state-of-the-art facility, LAUGFS Property, specialising in strategic real estate development and asset management, and SLOGAL Energy DMCC, serving as the Group’s global energy trading hub in Dubai.