Dialog Group Berhad announce that its indirect subsidiary, Dialog (Labuan) Ltd has entered into an agreement to dispose of its entire 60% equity stake in Dialog Jubail Supply Base Company Limited to Sedres Trading & Maritime Services Co Ltd, for a total cash receipt of SAR47.5 million (approximately RM55.0 million.

The comprising of sale consideration of SAR3.0 million and dividends of SAR44.5 million (approximately RM51.5 million) to be received prior to completion.

The unit is principally involved in the provision of logistics services of a supply base and trafing of base oil in Saudi Arabia. Both Dialog and Sedres are 60/40 share holders in the unit.

Dialog said the disposal comes as it belives the heavy lifting work is expected to decrease gradually and favouring normal logistics services only thus it felt its an opportune time to divest as Sedres showed interest to take over.

DLL's original cost of investment in DJSB was SAR1.2 million (approximately RM1.4 million) which was made in 2011 and the Shares Sale resulted in a gain to DIALOG of SAR0.9 million (approximately RM1.0 million). The sale proceeds it said will be used for working capital purposes.