Wednesday, December 1, 2010

Dialog to buy 90% stake in New Zealand's Fitzroy Engineering for RM31.7m

KUALA LUMPUR: DIALOG GROUP BHD [] is acquiring a 90% stake in Fitzroy Engineering Group Ltd (FEGL), one of New Zealand's largest heavy fabrication and multi-disciplined engineering companies, for RM31.7 million cash.

The company said on Wednesday, Dec 1 that its wholly owned subsidiary Dialog Systems (Asia) Pte Ltd had entered into a conditional sale and purchase agreement with Peter Clayton White-Robinson to acquire the 90% stake representing 2.38 million shares.

Dialog said the share purchase would further strengthen and enhance its fabrication business in the oil, gas and petrochemical industry, leveraging on FEGL's strengths in high quality engineering capabilities, business processes and methodologies as well as intellectual property rights for welding procedures.

'FEGL has an established track record in New Zealand and Australia for high quality engineering and are well-known for their reliability.

'The integration of FEGL into Dialog's fabrication business will provide Dialog group with immediate access to the established New Zealand market as well as provide growth opportunities for our Australian market,' it said.

The acquisition was also in line with its strategy of focusing and growing its core businesses, penetrating new markets and investing in businesses with long term sustainable income, said Dialog.

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