SIG cancels proposed deal to take over Piasau Gas

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  • Tuesday, 27 Jan 2015

KUCHING: SIG Gases Bhd has called off a proposed deal to acquire Piasau Gas Sdn Bhd in a move to expand its business network in Sarawak.

SIG, which has industrial gas manufacturing and refilling facilities in Bintulu, said the company and Piasau Gas were unable to reach an agreement on terms and conditions acceptable to both parties, and therefore did not wish to continue the negotiations for the proposed acquisition.

The two parties signed a memorandum of understanding (MoU) in September last year on the proposed deal, under which SIG would buy 100% equity interest in Piasau Gas from several parties – Shin Yang Corp Sdn Bhd, Tan Sri Ling Chiong Ho, Ling Chiong Sing, Geo Sepadu Sdn Bhd, Pui Voon Poh and Hong Ken Choon.

“The MoU shall cease to have effect, and each party shall have no claim under it against the other,” SIG said in a filing with Bursa Malaysia.

Located in Miri’s Kuala Baram Industrial Estate, Piasau Gas is involved in manufacturing, distribution and marketing of industrial gases, provision of services and maintenance and trading in welding equipment and machinery.

On Dec 30 last year, SIG completed a fund-raising exercise involving renounceable two-call rights issue of 37.5 million new ordinary shares of 50 sen each on the basis of one rights share for every four existing shares. The exercise raised gross proceeds of some RM13.5mil, with the bulk to go towards repaying bank borrowings.

The money raised is also to be used to purchase 9,200 units of cylinder for refilling and distribution of various industrial gases, purchase of one unit of hydrogen diaphragm compressor and upgrade of computer system to be Goods and Services Tax (GST) compliant.

SIG also has manufacturing and refilling facilities in several states in Peninsular Malaysia.

Meanwhile, Sabah businessman Lim Nyuk Foh, who emerged as the new single largest shareholder in Sarawak Consolidated Industries Bhd (SCIB) in October last year, has upped his stake in the company with the acquisition of more shares in the open market. Between Jan 8 and 15, he bought 121,000 shares at prices between 80.5 sen and 81 sen each,bringing his total direct and indirect shareholdings to some 21.54 million shares or 29,28%.

Lim, who is SCIB non-independent non-executive director, is also managing director of two other public listed companies – Priceworth International Bhd and Bertam Alliance Bhd, whose unit, Bertam Development Sdn Bhd, acquired nearly 3.65 million shares in SCIB or 4.95% in off market deals on Oct 14 and 15.

Another substantial shareholder Tan Sri Hamid Bugo also picked up more SCIB shares, bringing his total holdings to 14.72 million units or 20%. Also company chairmam, Hamid bought 97,100 shares from Jan 19 to 22.

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