SIG Gases Berhad (KLSE:SIGGAS) entered into a heads of agreement to acquire Sing Swee Bee Enterprise Pte Ltd from Peh Lam Hoh, Ng Swee Gek and Peh Tuan for MYR 29.5 million in cash and stock on January 29, 2013. The consideration comprises of issuance of 37.9 million shares of SIG Gases and a cash payment of MYR 5.2 million. As per terms of the deal, SIG Gases Berhad will acquire 4.6 million shares of Sing Swee Bee Enterprise. In a related transaction, SIG Gases Berhad entered into a heads of agreement to acquire SSB Cryogenic Equipment Pte Ltd from Peh Lam Hoh, Nelty Agustina Susanto, Yue Thye Chun, Lee Soon Thiam, Leong Chin Yew and Ler Zhi Kang for approximately MYR 120 million in cash and stock on January 29, 2013.

The deal is subject to the execution of definitive agreement and related transaction documents, completion of due diligence review of Sing Swee Bee, receipt of consolidated audited accounts of Sing Swee Bee for the financial period ended December 31, 2012, completion of the transfer of shares in SSB products Pte Ltd to Sing Swee Bee. The transaction is also conditional upon approval from the Securities Commission, Bursa Malaysia Securities Berhad for the listing and quotation of the consideration shares, shareholders of SIG Gases and any other relevant authorities. The acquisition of Sing Swee Bee Enterprise Pte Ltd and SSB Cryogenic Equipment Pte Ltd are inter-conditional upon each other. The acquisition shall not proceed unless a share purchase agreement is executed within six months from the date of heads of agreement or such extended period as may be agreed in writing. The agreement may be terminated at the option of SIG Gases, Sing Swee Bee, Peh Lam Hoh, Ng Swee Gek or Peh Tuan, if any of them becomes bankrupt or breaches any of the terms and condition of the heads of agreement. The agreement shall automatically terminate upon the expiry of the exclusivity period. The deal is expected to contribute positively to SIG Gases Berhad in the future.