Dialog Group Berhad (“DIALOG”) wishes to announce that on 16 March 2026, its wholly owned subsidiary, Dialog Chemicals Sdn. Bhd. (“DCSB”) and Diyou PCR Sdn. Bhd. (“DPSB”), have entered into a Share Purchase Agreement to dispose their respective 51% (“DCSB Share”) and 49% (“DPSB Share”) equity stake in Dialog Diyou PCR Sdn. Bhd. (“DDPCR”) with Ocean Fund Holdings Pte. Ltd. and Circulate Capital Ocean Fund I-B (“collectively as “Purchaser”) for a total cash consideration of RM1.00 for each seller and USD8,500,000 (approximately RM33 million equivalent) to be paid directly to DDPCR to fully repay DDPCR bank loan (“Sale Consideration”) (“Shares Sale”) on the completion date, which is 25 Business Days from the date of the Share Purchase Agreement.
DDPCR is principally involved in the production, sale and marketing of food grade recycled polyethylene terephthalate pellets and has ceased production.
DCSB is an investment holding company and DPSB is a wholly owned subsidiary of Diyou Fibre (M) Sdn. Bhd. which is a recycling and manufacturing company in Malaysia, based in Nilai, Negeri Sembilan.
Ocean Fund Holdings Pte. Ltd. and Circulate Capital Ocean Fund I-B are managed by Circulate Capital, a circular economy investment management firm. The Purchaser had expressed interest to take over DDPCR and it is an opportune time for DIALOG to divest its stake in DDPCR to strategically realign its focus back to its core businesses in the energy sector, positioning DIALOG for long-term growth and resilience.
The disposal involves the sale of 1,020,000 ordinary shares or DCSB’s entire 51% equity interest in DDPCR.
The Sale Consideration was based on a willing-buyer willing-seller basis, after taking into account DDPCR’s audited total assets as at 30 June 2025 of RM33.6 million.
DCSB’s original cost of investment in DDPCR was RM23.02 million and DIALOG had provided for full impairment of its investment in DDPCR in February 2025, resulting in a no gain or loss except for the cash consideration amount of RM1.00 to DIALOG.
DDPCR will cease to be a joint venture company of DIALOG with effect from the date of the registration of the change of shareholders of DDPCR, which is expected to be 25 Business Days from the date of the Share Purchase Agreement or such other date as agreed by the parties. The Shareholders’ Agreement dated 11 November 2021 entered into with DPSB will be terminated accordingly.
The Shares Sale has no effect on the share capital and substantial shareholders’ shareholdings of DIALOG and has no material impact on the earnings, net assets and gearing of DIALOG.
The Shares Sale does not require approvals from the relevant authorities and the shareholders of DIALOG.
None of the directors of DIALOG, major shareholders of DIALOG and/or persons connected with them have any interest, whether direct or indirect, in the Shares Sale.
This announcement is dated 16 March 2026.