Dialog acquires remaining 20% stake in Langsat Terminal 1 and 2

KUALA LUMPUR: Dialog Group Bhd's unit is acquiring the remaining 20% interests in Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd from Puma Energy Asia Pacific BV for a total sum of RM62.6mil.

As part of the deal, Dialog Terminals Sdn Bhd will take over Puma's portion of shareholder's loan to the Langsat Terminals amounting to RM32.4mil.

The two Langsat terminals are principally engaged in the provision of centralised tankage and tank terminal facilities to the O&G and petrochemicals industry.

According to filing with the stock exchange, the terminals with a combined storage capacity of 647,000 cubic metres 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," the group said in the filing.

"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."

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