The Board of Directors of Dialog Group Berhad (“DIALOG” or “the Company”) wish to announce that on 28 August 2015, its wholly owned subsidiary, Dialog Systems (Asia) Pte Ltd (“DSAPL”) has disposed of its 51% owned subsidiary, Anewa Engineering Private Limited (“Anewa”) to NPCC Engineering Private Limited for a total cash consideration of USD2,964,375 (approximately RM12.45 million based on exchange rate of RM4.2 / USD1) (“Sale Consideration”) (“Share Sale”). The disposal of Anewa, which is principally involved in the provision of design and detailed engineering services to the oil, gas and petrochemical industry, is to streamline the Group’s engineering activities to be within Malaysia. DSAPL is a company incorporated in Singapore and Anewa is a company incorporated in India.
The disposal involves the sale of 2,040,000 equity shares of Rs.10 each or DSAPL’s entire 51% equity interest in Anewa.
The Sale Consideration was based on a willing-buyer willing-seller basis, after taking into account Anewa’s unaudited net assets as at 30 June 2015 and audited net assets as at 31 March 2014 of Rs. 177.9 million and Rs.158.6 million respectively.
DSAPL’s original cost of investment in Anewa was Rs. 117,145,050 (equivalent to RM7.9 million) which was made in 2011 and the Share Sale resulted in a transaction gain to DIALOG of approximately RM1.93 million. The sale proceeds will be used for working capital purposes.
Anewa ceased to be a subsidiary of DIALOG with effect from 28 August 2015.
The Share Sale has no effect on the share capital and substantial shareholders’ shareholdings of DIALOG and has no material impact on the earnings, net assets and gearing of DIALOG.
The Share Sale does not require approvals from the relevant authorities and the shareholders of DIALOG.
None of the directors of DIALOG, major shareholders of DIALOG and/or persons connected with them have any interest, whether direct or indirect, in the Share Sale.
This announcement is made pursuant to Para 9.19(24) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
This announcement is dated 28 August 2015.
