Shin Yang Shipping proposes to acquire Piasau Gas for RM22.8m
27 Apr 2022
Shin Yang Shipping Corporation has proposed to acquire 100% of Piasau Gas Sdn Bhd for RM22.8 million cash in an acquisition it said would strengthen and complement the shipbuilding activities of the group.
In a Bursa Malaysia filing on Wednesday (April 27), the group said it is acquiring the stake from various parties including Geo Sepadu Sdn Bhd, Pui Voon Poh, Hong Ken Choon, Ling Chiong Sing and Tan Sri Ling Chiong Ho.
Piasau Gas is principally engaged in the business of manufacturing, distribution and marketing of industrial gases, provision of services and maintenance and trading in welding equipment and machinery.
“The acquisition will enable Shin Yang to vertically integrate the production of industrial gases into the group’s existing business in shipbuilding and ship repair.
“The group is expected to benefit from, among others, the consolidation of earnings of Piasau Gas, ability to better control its supply of liquefied nitrogen and oxygen, as well as reduced cost of purchases of liquefied nitrogen and oxygen,” it said.
Upon the acquisition which is slated to be completed by the third quarter of the year, the group intends to expand Piasau Gas’s liquefied petroleum gas (LPG) within the Sarawak region under Shin Yang Group’s existing operating office and warehouse in Kuching, Sibu, Bintulu, Miri and various reachable quarry and reforestation depots.
The proposed acquisition is expected to be funded by internally generated funds.
Shares in Shin Yang closed five sen or 1.35% lower to 36.5 sen on Wednesday, valuing the group at RM438 million.
Source: The Edge Markets