The proposed acquisition by Shian Yang Shipping Corporation (SYSCORP) of 100% equity interest in Piasau Gas Sd Bhd is to strengthen and complement the shipbuilding activities of SYSCORP Group.
In an independent Advice letter to non-interest shareholders of Syscorp in relation to the acquisition is to vertically integrate the production of industrial gases into the Group’s existing business in shipbuilding and ship repair.
It said that the enlarged SYSCORP Group is expected to benefit from among others, the consolidation of earnings of Piasau Gas, the ability to better control its supply of liquified nitrogen and oxygen, as well as reduced cost of purchases of liquified nitrogen and oxygen.
It said that it will be able to leverage Piasu Gas’s networks and clients base to cross-sell SYSCORP Group’s other shipping services such as transportation, door-to-door services, custom clearing, import and export documentation, and port related services under a unified “SYSCORP” franchise;
It said that it is also to expand Piasau Gas’s liquefied oxygen & nitrogen and Petronas LPG products to the clientele of SYSCORP Group both locally and globally especially related to shipbuilding business; and reduce the reliance on the external sources of liquefied oxygen and nitrogen gas service provider in the Group’s existing business in shipbuilding and ship repair.