SIG Gases to acquire a gas firm

PETALING JAYA: SIG Gases Bhd has entered into a memorandum of understanding with Shin Yang Corp Sdn Bhd and a few individuals to acquire a 100% equity interest in Piasau Gas Sdn Bhd.
In a filing with the stock exchange, SIG Gases said the indicative purchase price shall be based on the price-to-earnings ratio (PE) of nine times of net profit of the audited accounts of Piasau Gas for the financial year ended June 30, 2014.
Piasau Gas is involved in the manufacturing, distribution and marketing of industrial gases as well as provision of services and maintenance and trading in welding equipment and machinery.
However, it is stated that the shareholders of SIG Gases and potential investors are advised to exercise caution as there is no certainty that the proposed acquisition may proceed or result in a binding agreement.