Dialog buys remaining 20% stake in two Langsat terminals for RM62.6m

PETALING JAYA: Dialog Group Bhd is acquiring the remaining 20% stake in both Langsat Terminal (One) Sdn Bhd (LGT 1) and Langsat Terminal (Two) Sdn Bhd (LGT 2) for RM62.6 million.
Dialog said its wholly owned subsidiary Dialog Terminals Sdn Bhd (DTSB) had entered into a share purchase agreement (SPA) with Puma Energy Asia Pacific BV for the acquisition.
The acquisition prices are RM43.0 million and RM19.6 million for LGT 1 and LGT 2, respectively. In addition, DTSB will take over 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 acquisition will enable the group to benefit from higher profit after tax from the additional 20% ownership in the two companies.
Both LGT 1 and LGT 2 are principally engaged in the provision of centralised tankage and tank terminal facilities to the oil, gas and petrochemical industry.
DTSB also owns 100% equity interests in Langsat Terminal (Three) Sdn Bhd (LGT 3) which in March 2018 acquired two parcels of lease lands and a tank terminal in Tanjung Langsat, Johor for further expansion of Dialog's terminal business in Tanjung Langsat.
Operational since 2009, LGT 1 and LGT 2 with total storage capacity of 647,000 cubic metres (m3), are currently fully utilised on term contracts.
Dialog said the purchase sum and takeover of Puma's portion of shareholders' loan to LGT1 and LGT2 were funded by bank borrowing and internal fund, resulting in a net gearing ratio of less than 0.1 times from the net cash position based on its audited financial statements for FY June 30, 2017.
At the noon break, Dialog's share price gained 4 sen or 1.2% to RM3.42 on some 7.17 million shares done.