KUALA LUMPUR: Kelington Group Bhd
has entered into a conditional share sale agreement (SSA) to acquire 2.53 million ordinary shares in Ace Gases Sdn Bhd for RM35.69 million.
In a Bursa Malaysia filing today, Kelington said the acquisition represents the remaining 9.29 per cent equity interest and will allow it to fully control Ace Gases.
"The SSA is to be satisfied via cash consideration amounting to RM10.07 million cash and issuance of 7.59 million new ordinary shares in Kelington at an issue price of RM3.37 per share,” it said.
Kelington said that the acquisition would provide greater flexibility in planning and implementing long-term strategies for its business and services, enhancing its growth potential.
"In view of Ace Gases’ financial performance in recent years and its diverse geographical market coverage, Kelington may have the potential to pursue additional growth opportunities within the industrial gas industry,” it said.
Kelington said the proposed acquisition is expected to be completed in the second half of 2024.
UOB Kay Hian has been appointed to act as the adviser. - Bernama
