Dialog to lease land, buy tank terminal facilities at Tanjung Langsat for RM153 million

PETALING JAYA: Dialog Group Bhd is expanding its tank terminal storage capacity at Tanjung Langsat, Johor through the lease of land and purchase of tank terminal facilities from Johor Corp for a total of RM153 million.

Dialog told Bursa Malaysia that its wholly owned subsidiary Dialog Terminals Sdn Bhd had entered into a lease agreement with Johor Corp to lease two parcels of land measuring 35 acres at Tanjung Langsat for a term of 30 years at a lease rental of RM62 million.

It also inked a sale of facilities agreement with Johor Corp for the purchase of tank terminal facilities located on the land for RM91 million.

The facilities comprise equipment, machinery and assets for the handling, storing, separating, blending and distributing petroleum by vessel and petroleum related products, petrochemical products and such chemical products and other substances of blending components of about 100,000 cubic metre in storage capacity.

Dialog noted that the proposed transactions pave the way for the group to expand its tank terminal storage capacity and operations at Tanjung Langsat.

Its share price gained 8 sen or 3.6% to close at RM2.33 on Friday on some 16.74 million shares traded.