The Board of Directors of Dialog Group Berhad (“DIALOG” or “the Company”) wish to announce that on 11 May 2015, its subsidiary, Dialog Services Europe Limited (“DSEL”) has disposed of its wholly owned subsidiary, Dialog Technivac Limited (“DTL”) to Cakasa (Nigeria) Company Limited for a total cash consideration of GBP400,000 (approximately RM2.18 million based on exchange rate of RM5.45 / GBP1) (“Sale Consideration”) (“Share Sale”). The disposal of DTL, which is principally involved in the provision of catalyst and process material handling services, is in tandem with DIALOG’s strategy to refocus its catalyst handling services market to Malaysia and the Asia Pacific region. Both DSEL and DTL are companies incorporated in United Kingdom.
The disposal involves the sale of the entire paid-up share capital of DTL comprising of 313,500 ordinary shares of GBP1.00 each in DTL.
The Sale Consideration was based on a willing-buyer willing-seller basis, after taking into account DTL’s unaudited net liabilities as at 30 September 2014 and audited net liabilities as at 30 June 2014 of GBP103.1 thousand and GBP115.5 thousand respectively.
DSEL’s original cost of investment in DTL was GBP1.26 million (equivalent to RM8.56 million) which was made in 2007 and the Share Sale resulted in a transaction loss to DIALOG of approximately GBP363.2 thousand (equivalent to RM1.98 million). The sale proceeds will be used for working capital purposes.
DTL ceased to be a subsidiary of DIALOG with effect from 11 May 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 12 May 2015.
