Air Liquide Malaysia has made an offer to buy SIG Gases’ wholly-owned entity Southern Industrial Gas for RM 226.6m ($55.7m).

The offer would also include SIG Gases’ 40% stake in the joint venture Iwatani-SIG Industrial Gases.

In a filing with Bursa Malaysia, SIG Gases said it had received a letter dated today (25th March 2019) from Air Liquide Malaysia to acquire 23 million ordinary shares representing a 100% equity interest.

SIG Gases’ Board of Directors are currently deliberating and will make a decision by the end of the week (29th March).

The filing said, “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 Berhad.”

“The shareholders of SIG Gas and potential investors are advised to exercise caution when dealing in SIG Gas’ shares, as there is no certainty that the offer may proceed or may result in a binding agreement.”

The offer shall remain open for acceptance from the date of this announcement until 29th March 2019 and after which it shall lapse and be of no further legal effect.”

About Southern Industrial Gas

Southern Industrial Gas became a wholly-owned subsidiary of holding company SIG Gases in August 2010.

In March 2012, Southern Industrial Gas entered into a joint venture agreement with Iwatani Industrial Gas to establish a joint venture company called Iwatani-SIG Industrial Gases.

Iwatani holds a 60% stake in this joint venture company and Southern Industrial Gas holds a 40% stake.