Dialog and Sedres form Saudi joint venture
Posted: 07 August 2006
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Dialog Group Berhad said that its subsidiary Dialog ( Labuan) Ltd (DLL) entered into a joint venture agreement with M/s Sedres Maritime on August 1, 2006.
The deal establishes Dialog Services (KSA) Co. Ltd. (Dialog KSA), a limited liability company under the laws of Saudi Arabia. Dialog KSA will principally be involved in the provision of engineering, procurement, construction, and commissioning (EPCC) services and plant maintenance services to the oil, gas, and petrochemical industry in Saudi Arabia.
Dialog KSA will have an initial issued and paid share capital of 2 million Saudi Arabian Riyal. DLL will subscribe for 60% of the initial issued and paid up share capital while Sedres will subscribe for the balance 40%. DLL's investment in Dialog KSA will be funded by internally generated funds.
Sedres was established in 1993 by Zael Fahaid Al-Daihani. It is currently involved in a wide range of maritime, shipping, logistics, and related services, including serving the oil and gas industry in Saudi Arabia.
Dialog KSA will spearhead the Dialog Group's penetration of the oil, gas, and petrochemical markets in Saudi Arabia as well as other Persian Gulf countries for EPCC and plant maintenance services. This is in line with the group's strategy of expanding its geographical presence in its effort to become a global integrated speci alist technical services provider to the oil, gas, and petrochemical industry. The investment in Dialog KSA is expected to have a positive effect on the group's future earnings.
The agreement is not subject to the approval of any statutory bodies, nor the shareholders of the Dialog Group and DLL. |
