Dialog buys remaining 20% stake in two Langsat terminals for RM62.6m
Dialog Group Bhd has taken full control of two firms that provide centralised tankage and tank terminal facilities to the oil, gas and petrochemical industry, after acquiring the remaining 20% stake in both firms for RM62.6 million.
The group said its wholly-owned subsidiary Dialog Terminals Sdn Bhd paid RM43 million for the stake in Langsat Terminal (One) Sdn Bhd (LGT1) and RM19.6 million for the stake in Langsat Terminal (Two) Sdn Bhd (LGT2). The vendor is Puma Energy Asia Pacific B.V.
In a filing to Bursa Malaysia, the group said Dialog Terminals is also assuming Puma’s portion of shareholder’s loan to LGT1 and LGT2, including principal and accrued interest, amounting to RM24.3 million and RM8.1 million respectively.
Dialog said the acquisitions will enable the group to benefit from higher profit after tax from the additional 20% ownership in the two firms.
Dialog Terminals also owns 100% equity interests in Langsat Terminal (Three) Sdn Bhd (LGT 3) which in March 2018 acquired two parcels of lease land and a tank terminal in Tanjung Langsat, Johor for further expansion of Dialog’s terminal business in the area.
Operational since 2009, LGT 1 and LGT 2 have a total storage capacity of 647,000 cubic metres which are currently fully utilised on term contracts.
“The acquisition presents the right opportunity for Dialog to increase its equity ownership of existing tank terminals built by Dialog with proven track records.
“Together with the potential expansion of Langsat Terminals, and development of Phase 3 and future phases of Pengerang Deepwater Terminals, the acquisition is in line with Dialog’s strategy to grow sustainable and recurring income thereby further enhancing shareholders’ value in the long term,” the group said.
Source: The Edge Markets