KUALA LUMPUR (Nov 15): Dialog Group Bhd has acquired the entire stake in Tarpon Platform Systems Malaysia Sdn Bhd (Tarpon Malaysia) and all assets of Tarpon Systems International II, LLC (TSIL) for a total cash consideration of US$1.19 million (approximately RM5.5 million).

The group told Bursa Malaysia on Wednesday that the acquisition is 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.

According to Dialog, Tarpon Malaysia provides engineering, construction, installation and maintenance services to upstream energy companies that use the Tarpon platform system (Business).

“Dialog will be able to offer the Tarpon system to its clients in Malaysia and surrounding countries. Due to its low cost and rapid deployment characteristics, it will enable them to unlock hydrocarbon resources that would otherwise remain undeveloped.

“The acquisition will pave the way for Dialog to strengthen the value chain in the upstream business,” it said.

Dialog said the proposed acquisition will be funded entirely by internally generated funds. The acquisition is expected to conclude and complete before year-end.

Shares in Dialog finished nine sen or 4.27% higher at RM2.20, giving it a market capitalisation of RM12.46 billion.