KUALA LUMPUR: PETROLIAM Nasional Bhd’s (Petronas) subsidiary MISC Bhd has exited the tank terminal business after selling all its 45 per cent stake in Centralised Terminals Sdn Bhd (CTSB) to Dialog Group Bhd for RM193 million.
This ends MISC’s decade-long association with Dialog Group through CTSB.
The disposal is in line with MISC’s initiative to divest non-core tank terminal business and focus on its core business in the energy-related maritime solutions and services.
It is also in tune with parent Petronas’ plans to divest assets that will no longer meet its viability threshold as it builds a robust portfolio that will potentially give sustainable returns.
CTSB owns an 80 per cent stake in Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd, which are centralised tankage and tank terminal facilities serving the oil, gas and petrochemical industry in Johor.
“Upon completion of the sale- and-purchase agreement (S&P), CTSB will cease to be a joint-venture company of MISC and this marks MISC’s exit from the tank terminal business,” said the company yesterday.
MISC president and group chief executive Yee Yang Chien said the disposal would enable it to unlock the value of its investment in CTSB and take advantage of other opportunities within the energy and maritime industry.
“It has been a great pleasure working with Dialog since 2007 and we wish Dialog the very best in its future endeavours,” Yee added.
MISC will continue to strengthen its core businesses in providing international energy-related maritime solutions and services.
It also said the transaction was expected to be completed within one month from the date of the S&P agreement.
MISC shares closed unchanged at RM7.38 yesterday, while Dialog was down 0.5 per cent, or one sen lower at RM1.99.