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Union Gas to purchase entire issued and paid-up capital of U-Gas

UNION Gas Holdings announced late on Monday that it has provided Union Energy Corporation (UEC) with a formal notice that it intends to exercise the call option granted to the company by UEC to acquire its business that supplies liquefied petroleum gas (LPG) to hawker centres.

As part of the call option, UEC will sell the entire issued and paid up capital of U-Gas in a definitive sale and purchase agreement.

The value of the U-Gas acquisition is S$9.2 million, and will be paid by S$2.76 million in cash, and an allotment and issue of 24.3 million ordinary shares in the issued and paid-up capital of the company at an issue price of S$0.2647 per share, amounting to S$6.4 million.

The company said that the U-Gas acquisition is in line with the group's growth strategy, and the company recognises the performance and continuing potential of the underlying business relating to U-Gas, especially the retail sale of LPG to hawker centres in Singapore.