business

Dialog's subsidiary to buy remaining stake in LGT1, LGT2 for RM62m

KUALA LUMPUR: Dialog Group Bhd’s wholly-owned subsidiary, Dialog Terminals Sdn Bhd (DTSB), has entered into a share purchase agreement with Puma Energy Asia Pacific BV to acquire the remaining 20 per cent interest in the Langsat Terminal (One) Sdn Bhd (LGT 1) and Langsat Terminal (Two) Sdn Bhd (LGT 2) for RM62.6 million.

In addition, DTSB would take over Puma’s portion of shareholder’s loan to LGT1 and LGT2, including principal and accrued interest, totaling RM32.4 million.

Dialog in a filing to Bursa Malaysia today said the acquisition would enable the company to benefit from higher profit after tax from the additional 20 per cent ownership.

“The acquisition presents the right opportunity for Dialog to increase its equity ownership of existing tank terminals built by a company with proven track record,” it added.

It said together with the potential expansion of the Langsat Terminals, and development of phase three and future phases of the Pengerang Deepwater Terminals, the acquisition is in line with Dialog’s strategy to grow sustainable, recurring income, thereby further enhancing shareholders’ value in the long term.

Most Popular
Related Article
Says Stories