KUALA LUMPUR: Petronas Dagangan Bhd (PetDag) said it plans to sell its liquefied petroleum gas (LPG) business to PetrosNiaga Sdn Bhd (PNiaga) and subscribe to a 49 per cent stake in PNiaga as part of a business transfer and share subscription agreement (BTSSA) with PNiaga and Petroleum Sarawak Bhd (PETROS).

       PNiaga is a wholly-owned subsidiary of PETROS.

       PetDag said the BTSSA set out three proposed transactions, namely a cash payment of RM40 million from PNiaga to PetDag, the allotment and issuance of a 49 per cent stake in PNiaga to PetDag or its wholly-owned affiliate, as well as a contingent payment of up to RM40 million by PETROS to PetDag.

       Under the deal, PetDag will hold 49 per cent equity in PNiaga and will market PETROS-branded LPG cylinders to household and commercial customers in Sarawak after the completion of the BTSSA.

       "The proposed transactions would result in a long term strategic partnership with PETROS in developing the LPG business in Sarawak,” the company told Bursa Malaysia.

       "By partnering with PETROS, the synergies achieved by leveraging on the strengths, experience, and competencies of both companies are expected to maximise value for our customers in Sarawak.” - Bernama