Friday 29 Mar 2024
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KUALA LUMPUR (Apr 3): Dialog Group Bhd's shareholders had today approved the company's plan to raise funds for investments in two projects with a collective value of RM9 billion in Pengerang, Johor.

Dialog (fundamental: 2.1; valuation: 0.3) owns a 25% stake each in the proposed RM6.3 billion Pengerang Terminal phase two and RM2.7 billion Pengerang liquified natural gas (LNG) projects.

Based on Dialog's stakes and financing obligations for both projects, the company had earlier sought shareholders' approval at the company's extraordinary general meeting (EGM) to raise some RM2.65 billion for investments in the projects.

The amount comprises RM1.9 bllion and RM750 million respectively for investments in the Pengerang Terminal phase two and Pengerang LNG projects.

Dialog executive chairman Tan Sri Ngau Boon Keat said the fundraising exercise was expected to raise the company's gearing ratio to 0.6 time in four years.

This compares with Dialog's current gearing ratio of 0.2 time, according to Ngau.

"Since it is a project for four years, we will only see the increase in gearing after that. Even at 0.6 time, our gearing is still at a comfortable level," Ngau told reporters after Dialog's EGM today.

At 12:30pm, Dialog shares rose one sen or 0.6% to settle at RM1.60 for a market capitalisation of RM8.08 billion.

A total of 585,500 shares changed hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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