Friday 29 Mar 2024
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KUALA LUMPUR (Nov 10): Dialog Group Bhd is going to lease two plots of land in Johor from Johor Corp (JCorp) for 30 years and buy a tank terminal facility from the Johor state investment corporation, to expand its tank terminal storage capacity and operations at Tanjung Langsat.

Dialog said in a local exchange filing today that it has inked a lease agreement and a sale and facilities agreement with JCorp via its indirect unit, Langsat Terminal (Three) Sdn Bhd, to effect the transactions, valued at RM153 million in all.

The 30-year deal for the plots, measuring a combined 35 acres, is for a total lease rental of RM62 million, while the price of the tank terminal facility, which is located on one of the plots, is RM91 million.

Dialog said the proposed transactions pave the way for Dialog Terminals Sdn Bhd (DTSB), under which Langsat Terminal (Three) is parked, to expand its tank terminal storage capacity and operations at Tanjung Langsat.

The combined land area of the two plots, which are situated next to DTSB's existing tank terminal facilities, can support development of additional storage tank capacity of approximately 300,000 cubic metre (cbm), on top of the existing 100,000 cbm of the tank terminal facility it is buying.

This will bring the aggregate tank terminal storage capacity for DTSB at Tanjung Langsat to over 900,000 cbm, the filing read.

Dialog took full control of DTSB after acquiring MISC Bhd's 45% interest in the company in September. DTSB also owns an 80% equity interest in Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd, which are engaged in the provision of centralised tankage and tank terminal facilities to the oil, gas and petrochemical industry.

Dialog's other ownerships of tank terminals are in Pengerang Deepwater Terminal (PDT) and Kertih Terminal. Dialog has a 46% share in phase 1 of the PDT and a 50% phase in Phase 2. The group also has a 30% stake in Kertih Terminals Sdn Bhd, which owns and operates a petroleum and petrochemical storage terminal in Kertih, Terengganu.

"Together with the development of Phase 3 and future phases of PDT, the expansion of Tanjung Langsat storage capacity is in line with Dialog's strategy to grow sustainable and recurring income thereby further enhancing shareholders' value in the long term," it said.

On a separate note, Dialog said it has appointed Teo Seow Ling as the chief executive officer of DTSB last month. Prior to joining Dialog, he was the vice president of operations at Singapore LNG Corporation Pte Ltd for two years.

Dialog shares climbed 8 sen or 3.56% to settle at RM2.33 today, for a market capitalisation of RM13.1 billion. The stock has climbed 55.4% over the last 12 months.

 

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