Union Gas Holdings is proposing to amalgamate two of its wholly-owned subsidiaries, U-Gas and Union LPG into Union LPG. The proposed amalgamation will take effect on Jan 1, 2023.
LPG stands for liquefied petroleum gas.
The group had acquired U-Gas from Union Energy Corporation in 2018 for $9.2 million. It is the subsidiary LPG retail arm that mainly supplies LPG to hawker centres in Singapore.
“The merger of the two subsidiaries is part of our strategy to streamline our organisational structure for better overall management control and efficiency. Consolidating our resources makes sense, especially in view of the higher cost environment now, while concurrently upholding the standards of our service to our customers. I believe this decision will enable Union Gas to continue delivering value to our stakeholders,” says Teo Hark Piang, Union Gas’ executive director and CEO.
Shares in Union Gas closed 2 cents higher or 4.21% up at 49.5 cents on Dec 14.
