Mild positivity expected from acquisition of EC-Dialog
KUALA LUMPUR: Dialog Group Bhd (Dialog) has acquired the balance 60 per cent equity interest in Singapore-based EC-Dialog Pte Ltd (EC-Dialog) and analysts are slightly positive on the move.
Given the relatively low cash proceed, the research arm of AmInvestment Bank Bhd (AmInvestment Bank) said this transaction – based on net asset valuation – would not have any significant impact on the group’s earnings.
To note, Dialog acquired ECDialog for for S$2 million or about RM7 million in cash from Winsome Management & Services Pte Ltd.
“However, the additional stake in EC-Dialog enables the group to obtain full ownership of the research and technological knowhow of catalyst handling while consolidating its catalyst handling services presence in Malaysia and Asia-Pacific region.
“Hence, we are mildly positive on this development as Dialog’s catalyst handling specialists provide a one-stop solution for commissioning and maintaining catalytic reactors, vessels and columns for refinery, petrochemical and chemical facilities.
“It presently owns a full range of patented technology which includes ‘Closed-circuit, Closedloop’ systems, Ultra low attrition, zero-dust emission & zero-spillage hoppers,” it added.
Meanwhile, AmInvestment Bank noted that at this stage, the main driver for Dialog’s earnings momentum lies in its Pengerang tank terminal development in Johor.
“Recall that the group’s progress on the RM6.3 billion PDT Phase 2 remains on track as the RAPID complex stays on schedule with progressive completion in 2018 to 2019,” it said.
Additionally, it pointed out that the RM2.7 billion LNG regasification plant and storage tanks, in which Dialog has a 25 per cent equity stake, are scheduled for completion by end-2017.
“For the Pengerang LNG regasification project, which will have a combined capacity of 200,000 m3, the first tank will be completed by July 2017 while the second by December 2017,” it added.