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SIGGAS gets offer to buy subsidiary for RM226.59 mln

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KUCHING: SIG Gases Bhd (SIGGAS), which owns and operates manufacturing and refilling facilities for industrial gases in Bintulu, has received an offer to buy one of its subsidiaries for about RM226.59 million.

The offer to acquire the entire equity interest in wholly-owned Southern Industrial Gas Sdn Bhd (SIGSB) came from Air Liquide Malaysia Sdn Bhd (ALM).

The offer for 100 percent equity interest in SIGSB includes the 40 percent minority shareholding owned and held by SIGSB in Iwatani-SIG Industrial Gases Sdn Bhd.

The purchase consideration of RM226.59 million is subject to the adjustment less bank borrowings plus cash and bank balance as further detailed in the offer letter, based on the cut-off date to be determined upon finalisation of terms, SIGGAS said in a filing with Bursa Malaysia.

The offer will remain open for acceptance until March 29 and after which it shall lapse and be of no further legal effect.

“The board (of directors) will deliberate on the offer letter in due course. Further announcement(s) will be made upon the decision of the board in relation to the offer and upon the execution of the sales and purchase agreement in relation to the offer, detailing the terms, effects and all relevant disclosures in relation to the offer pursuant to the main market listing requirements of Bursa Malaysia Securities Bhd,” said SIGGAS.

SIGGAS advised its shareholders and potential investors to exercise caution when dealing with its shares “as there is no certainty that the offer may proceed or may result in a binding agreement.”

SIGSB’s core industrial gases business provides atmospheric and process gases and related equipment to manufacturing markets, including construction, engineering, electronic, packaging assembly, food/beverage, leisure/recreation, medical, metal fabrication, ship building and
petrochemical.

SIGSB has manufacturing and refilling facilities in eight locations in Malaysia, six of them in several states in Peninsular Malaysia and the other two in Samalaju and Bintulu. The Samalaju facilities serves energy-intensive industries in Samalaju Industrial Park within the Sarawak Corridor of Renewable Energy (SCORE).

Its integrated network includes branches, cylinder refilling plants, production facilities, specialty gas laboratories and distribution centres.

SIGSB is also a distributor of process chemicals, refrigerants and ammonia products.

SIGGAS’s single largest shareholder is Singaporean Peh Lam Hon, who has a stake of 42.14 percent in the company as at March 20,2018. Peh is also the company’s executive chairman.

Second single largest shareholder is non-independent non-executive director Datuk Syed Ahmad Alwee Alsree, who holds 38.35 percent direct and indirect equity interest in the company.

Syed Ahmad is also Cahya Mata Sarawak Bhd (CMS) group executive director and husband of Datuk Hanifah Hajar Taib.

Hanifah has a direct stake of 3.35 percent and indirect stake via Phoenix SIG Holdings Sdn Bhd in SIGGAS. 

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