KUALA LUMPUR (Sept 25): MISC Bhd plans to dispose of its 45% equity interest in Centralised Terminals Sdn Bhd (CTSB) to Dialog Group Bhd for RM193 million.

CTSB owns an 80% stake in Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd, which are centralised tankage and tank terminal facilities serving the oil, gas and petrochemical industry in Johor.

In a filing with Bursa Malaysia today, MISC said this is in line with the group's initiative to divest its non-core tank terminal business, unlock the value of its investment in CTSB and to focus on its core business in the energy-related maritime solutions and services.

It added that the group has entered into a share purchase agreement with Dialog for the proposed disposal.

"The purchase consideration of MISC shares was arrived at on a 'willing-buyer willing-seller' basis after taking into consideration CTSB's unaudited net assets as at June 30, 2017," said MISC.

Upon the completion of the proposed disposal, CTSB will cease to be a joint-venture company of MISC.

"The proposed disposal is not expected to have any material effect on the earnings, gearing and net assets of MISC Group for the financial year ending Dec 31, 2017," said MISC, adding that the proposed disposal is expected to be completed within one month.

In a separate filing, Dialog said the proposed acquisition will enable it to incorporate and consolidate CTSB’s contribution into the group revenue and benefit from higher net profit from the additional 45% ownership in CTSB.

“The proposed acquisition presents the right opportunity for Dialog to increase its equity ownership of existing tank terminals built by Dialog 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,” it added.

In addition to current terminals owned by CTSB, Dialog owns tank terminals in Pengerang Deepwater Terminal and Kertih Terminal.

Operational since 2009, LGT 1 and LGT 2 with total storage capacity of 647,000 cu m, are currently fully utilised on term contracts. Both terminals have been included by oil agency Platts for its FOB Straits oil price assessment process.

MISC shares closed unchanged at RM7.38 today, giving it a market capitalisation of RM32.94 billion. Dialog shares were down 0.5% or one sen lower at RM1.99, valuing it at RM11.28 billion.