Air Liquide Malaysia Sdn. Bhd. made an offer to acquire Southern industrial Gas Sdn Bhd from SIG Gases Berhad (KLSE:SIGGAS) for approximately MYR 230 million on March 25, 2019. As of March 28, 2019, SIG Gases Berhad accepted the offer. Air Liquide Malaysia Sdn. Bhd. entered into a conditional sale and purchase agreement to acquire Southern industrial Gas Sdn Bhd from SIG Gases Berhad for approximately MYR 200 million on June 14, 2019. The consideration shall comprise MYR 158.42 million in cash and MYR 43.3 million towards intercompany advances borrowed by Southern industrial Gas and owed to SIG Gases Berhad. The consideration shall be fully satisfied entirely in cash on a cash-free and debt-free basis. As per the agreement, Air Liquide Malaysia shall acquire 23 million shares of Southern industrial Gas. The consideration is subject to the adjustment less bank borrowings plus cash and bank balance, based on the cut-off date to be determined upon finalization of terms. Air Liquide Malaysia has sufficient financial resources to finance the acquisition. In case of lapse of agreement, all obligations and liabilities of the parties shall cease and no party shall have any claim against the other party. For the financial year ending December 31, 2018, Southern industrial Gas reported revenue of MYR 78.55 million, profit before taxation of MYR 4.27 million, profit after tax of MYR 4.44 million and net assets of MYR 78.26 million. The transaction is subject to approval from shareholders of SIG Gases Berhad and senior management have not resigned from Southern industrial Gas. In case the conditions are not fulfilled on or before the date falling 5 months from the agreement date, the agreement shall lapse and cease to have further effect. The transaction is expected to be completed by the second half of 2019. SIG Gases Berhad shall utilize the transaction proceeds towards acquisition of new businesses and/or assets, working capital, estimated expenses for certain proposals and proposed distribution to all entitled shareholders by way of proposed capital reduction and repayment exercise and proposed special dividend. The transaction is expected to increase the earnings and earnings per share of SIG Gases Berhad for the financial year ending December 31, 2019. Kenanga Investment Bank Berhad (KLSE:KENANGA) and Mercury Securities Sdn Bhd acted as financial advisors for SIG Gases Berhad. Air Liquide Malaysia Sdn Bhd completed the acquisition of Southern Industrial Gas Sdn Bhd from SIG Gases Berhad (KLSE:SIGGAS) for MYR 230 million on October 31, 2019. The consideration includes cash balance of MYR 2.04 million, intercompany advances of MYR 43.32 million. The transaction also includes adjustment of MYR 65.8 million.