AWR Lloyd advises Sri Lankan client on sale of Bangladesh LPG business
On 15th November 2022, Laugfs Holding Limited (Laugfs Holding), a Sri Lankan conglomerate, completed the sale of its Bangladesh liquefied petroleum gas (‘LPG’) marketing, logistics and distribution business, Laugfs Gas (Bangladesh) Limited (‘LGBL’). AWR Lloyd acted as advisor to Laugfs Holding, managing a competitive divestment process as part of an overall assignment to advise the group on the restructuring of its energy sector interests.
LGBL is a leading LPG distributor for retail and industrial use in Bangladesh. The company’s main assets include an LPG terminal at Mongla Port in the south of Bangladesh, a cylinder-filling and requalification plant and a network of regional distribution centers. Bangladesh’s LPG market is growing fast as the nation transitions towards cleaner fuel to reduce carbon emissions and increase energy security. LPG consumption in Bangladesh, which has been towards 1.2 million tonnes per annum in recent years is forecasted by AWR Lloyd to increase to over 4 million tonnes per year by 2030.
LGBL was sold to a Hong Kong based energy trading group for USD 23.4 million. AWR Lloyd will continue to advise Laugfs Holding in relation to the development and further restructuring of its energy sector interests, including securing a strategic investor for the group’s 30,000 tonne strategically located LPG storage terminal at the Hambantota International Port in Sri Lanka. The terminal has permits in place allowing it to expand to 45,000 tonnes of aboveground storage capacity, with possibilities to transform the terminal into one of the largest LPG transshipment and energy security hubs in the Indian Ocean. Additionally, pre-feasibility work has been completed by a leading underground storage consultant regarding potential cavern storage capacity of 60,000 tonnes.
About AWR Lloyd
AWR Lloyd has a 22-year track record providing M&A advisory and strategy consulting services to clients across the Indo-Pacific region from the Middle East, through South Asia to Southeast Asia. The firm was ranked by Vault as No.3 for ‘Innovation’ amongst all consulting firms in Asia-Pacific for 2022.
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