SIG Gases to distribute special dividend following disposal

14 Jun 2019 / 19:05 H.

PETALING JAYA: SIG Gases Bhd has proposed to dispose of its 100% equity interest in Southern Industrial Gas Sdn Bhd (SIGSB), which in turn holds a 40% stake in Iwatani-SIG Industrial Gases Sdn Bhd (Iwatani-SIG), and to distribute part of the proceeds by way of proposed capital reduction and repayment exercise and a special dividend.

Subject to the completion of the proposed disposal, the board proposes to distribute RM179.43 million to the entitled shareholders of SIG.

“The tentative amount proposed to be distributed as special dividend will be 55.7 sen per share which amount to RM104.43 million. The actual amount to be distributed will be determined later,“ it said.

SIG has entered into a conditional sale and purchase agreement with Air Liquide Malaysia Sdn Bhd for the proposed disposal.

It said the proposed disposal is timely and provides an opportunity for SIG to unlock and realise its value of investment in SIGSB. The group will also realise an estimated gain on disposal of RM74.56 million.

“The exercise will allow the shareholders to partially realise in cash, their investments in the company as SIG intends to distribute part of the disposal proceeds to all entitled shareholders,“ the group said.

Barring any unforeseen circumstances and subject to all requisite approvals being obtained, the proposals are expected to be completed by the second half of 2019.

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