Dialog Group Berhad’s indirect subsidiary Dialog (Labuan) Ltd has disposed its entire 60% equity stake in Dialog Services Saudi Arabia Company Limited to Sedres Trading & Maritime Services Co Ltd for a total cash consideration of SAR6,600,000 or approximately RM7.7 million.
The Saudi outfit, was principally involved in the contracting of petroleum and petrochemical related works, and trading in specialty chemicals and equipment. Dialog decided to sell of the stake after the buyer showed interest, the group felt it was opportune time to divest its stake in the company.
The disposal involves the sale of 1,200 ordinary shares or DLL’s entire 60% equity interest in DSSA. The Sale Consideration was based on a willing-buyer willing-seller basis, after taking into account DSSA’s unaudited net assets as at 30 September 2022 of SAR11.0 million.
DLL’s original cost of investment in DSSA was SAR1,200,000 (approximately RM1.4 million) which was made in 2006 and the Shares Sale resulted in a no gain or loss to DIALOG. The sale proceeds will be used for working capital purposes.
The groups operations in Saudi Arabia will continue under Dialog Jubail Supply Base Company Limited, another company which DIALOG and Sedres has equity stake of 60% and 40% respectively.
ale.
