KUALA LUMPUR: Dialog Group Bhd’s wholly-owned Singapore subsidiary, Dialog Systems (Asia) Pte Ltd has entered into a conditional agreement with Pan Orient Energy Corp to acquire its entire equity interest for US$38.7mil (RM170.3mil) cash.

       In a filing with Bursa Malaysia yesterday, the group said the agreement was signed between Dialog Systems’ 100%-owned Canadian company Alberta Ltd and Pan Orient Energy.

       “Upon finalisation of the proposed acquisition, Pan Orient Energy will be delisted from Canada’s TSX Venture Exchange and Dialog Group will acquire 100% equity interest in Pan Orient Petroleum Pte Ltd,” it said.

       Pan Orient Petroleum, which is Pan Orient Energy’s wholly-owned Singapore subsidiary, also holds 50.01% equity interest in Pan Orient Energy (Siam) Ltd, which is the operator of Concession L53/48, onshore Thailand.

       Dialog Group said the purchase price would be funded by internal funding and/or external borrowing including proceeds from sukuk issuance.

       It added that the proposed acquisition was its first upstream venture outside of Malaysia for mature upstream oil-producing fields, paving the way for the group to move further up the value chain in the upstream business.

       The proposed acquisition was also in line with the group’s strategy to continue to expand and diversify across the upstream, midstream, downstream and renewable businesses of the energy sector, thereby increasing opportunities for synergies within the group, it added.

       Barring any unforeseen circumstances, Dialog Group said the proposed acquisition is expected to be completed by the third quarter of 2022. — Bernama