Malaysia's Petronas Gas gets nod for internal reorganisation
A logo of Petronas is seen at their office in Kuala Lumpur, Malaysia, April 27, 2022. Picture taken on April 27, 2022. REUTERS/Hasnoor Hussain
KUALA LUMPUR :Malaysia's Petronas Gas Berhad has received tax exemption approval from the Finance Ministry for a proposed restructuring plan that will transfer its core businesses to three wholly-owned subsidiaries, it said on Wednesday.
Petronas Gas, a unit of state-owned Petronas Group, said in a stock exchange filing that the Ministry gave the go-ahead for the relevant tax exemption via a letter on September 24 and was received by the company on September 30, following the Board's approval of the restructuring on July 23.
The proposed internal reorganisation will involve the transfer of the assets, liabilities and business undertakings of the company's core business segments - gas transportation, gas processing and utilities - into three wholly-owned subsidiaries, it said in the filing.
The gas transportation business will be transferred to PG TransCo Sdn. Bhd., the gas processing business to PG Gas Processing Sdn. Bhd., and the utilities business to PG Utilities East Sdn. Bhd.
"This strategic initiative is intended to streamline the business segments under the company into identifiable business entities by establishing a distinction between regulated and non-regulated businesses," it said.
The reorganisation is expected to be completed in the third quarter of 2026 barring any unforeseen circumstances, Petronas Gas said.
