PETALING JAYA: MISC Bhd is disposing of a 45% stake in Centralised Terminals Sdn Bhd (CTSB) to its joint venture partner Dialog Group Bhd for RM193 million.
MISC said the disposal sum consists of the purchase consideration for MISC’s shares amounting to about RM137 million and the repayment of shareholder’s advances and accrued interest by Dialog on behalf of CTSB amounting to RM56 million.
After proposed disposal, CTSB will cease to be a joint venture company of MISC, but will become Dialog’s wholly owned subsidiary.
MISC said the proposed disposal is in line with its initiative to divest non-core tank terminal business and focus on its core business in the energy-related maritime solutions and services.
CTSB owns an 80% stake in Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd, which are involved in the provision of centralised tankage and tank terminal facilities to the oil, gas and petrochemical industry.
Operational since 2009, both terminals have a total storage capacity of 647,000 cubic metres and are currently fully utilised on term contracts.
Dialog noted that the proposed acquisition presents the right opportunity for the group to increase its equity ownership of existing tank terminals with proven track records.
“Full ownership would allow control and enhance accelerated decision-making to align CTSB to Dialog’s strategic direction as well as to facilitate future expansion by CTSB.”
At yesterday’s market close, MISC shares were unchanged at RM7.38 on 924,900 done, while Dialog shares fell one sen to RM1.99 with 13.76 million traded.
Source: The Sun Daily