Union Gas : Increase In Share Capital In Wholly-owned Subsidiaries

UNION GAS HOLDINGS LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration Number: 201626970Z)

INCREASE IN SHARE CAPITAL IN WHOLLY-OWNED SUBSIDIARIES

The Board of Directors of Union Gas Holdings Limited (the "Company" together with its subsidiaries, the "Group") wishes to announce the following;-

1. INCREASE IN SHARE CAPITAL IN UNION ENERGY PTE. LTD. ("UNION ENERGY")
   The Company had increased its investment in the paid up ordinary share capital of its wholly- owned subsidiary, Union Energy, from S$2.00 to S$2,000,000.00 by subscribing for an additional 1,999,998 ordinary share in cash, at S$1.00 per share (the "Additional Investment 1").
   Following the Additional Investment 1, the Company holds 2,000,000 ordinary shares in Union Energy (representing 100% of its issued share capital).
2. INCREASE IN SHARE CAPITAL IN U-GAS PTE. LTD. ("U-GAS")
   The Company had increased its investment in the paid up ordinary share capital of its wholly- owned subsidiary, U-Gas, from S$2.00 to S$500,000.00 by subscribing for an additional 499,998 ordinary share in cash, at S$1.00 per share (the "Additional Investment 2")
   Following the Additional Investment 2, the Company holds 500,000 ordinary shares in U-Gas (representing 100% of its issued share capital).
3. INCREASE IN SHARE CAPITAL IN UNION LPG PTE. LTD. ("U LPG")
   The Company had increased its investment in the paid up ordinary share capital of its wholly- owned subsidiary, U LPG, from S$2.00 to S$2,000,000.00 by subscribing for an additional 1,999,998 ordinary share in cash, at S$1.00 per share (the "Additional Investment 3").

Following the Additional Investment 3, the Company holds 2,000,000 ordinary shares in U LPG (representing 100% of its issued share capital).

The Additional Investments 1, 2 and 3 were transactions undertaken by Company to strengthen the capital base of Union Energy, U-Gas and U LPG. Union Energy, U-Gas and U LPG are subsidiaries of the Group which are principally engaged in the retail of small bottled LPG cylinders to domestic households and the supply of LPG in big cylinders to commercial hawker centres, eating houses, coffee shops and central kitchens. The above transactions were funded through the Company's internal resources and are not expected to have any material impact on the net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2020.

None of the Directors or controlling shareholder (and their respective associates) of the Company has any interest, direct or indirect, in the above transaction, save for their interest arising by way of their shareholdings and/or directorships, as the case may be in the Company.

By Order of the Board

Teo Hark Piang

Executive Director and Chief Executive Officer

18 December 2020

This announcement has been reviewed by the Company's sponsor, CIMB Bank Berhad, Singapore Branch ("Sponsor") in accordance with Rule 226(2)(b) of the Catalist Rules. This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact persons for the Sponsor are Mr. Yee Chia Hsing, Head, Catalist, Investment Banking, Singapore and Mr Ken Lee, Associate Director, Investment Banking, Singapore. The contact particulars are 50 Raffles Place, #09-01 Singapore Land Tower, Singapore 048623, telephone: [phone].