Dialog Group Bhd has announced that its wholly-owned subsidiary, Dialog Chemicals Sdn Bhd (DCSB), together with Diyou PCR Sdn Bhd, will sell their 51% and 49% stakes, respectively, in Dialog Diyou PCR Sdn Bhd (DDPCR) to two companies managed by circular economy investment firm Circulate Capital.
In a Bursa Malaysia filing on Monday, Dialog said DCSB and Diyou PCR will receive RM1 each from the purchasers, Ocean Fund Holdings Pte Ltd and Circulate Capital Ocean Fund I-B. Additionally, the buyers will pay US$8.5 million (about RM33 million) directly to DDPCR to fully repay the company’s bank loan.
DDPCR, which produces, sells, and markets food-grade recycled polyethylene terephthalate (PET) pellets, has already ceased production. Dialog said the divestment allows the group to strategically refocus on its core energy businesses, supporting long-term growth and resilience.
The sale price was determined on a willing-buyer, willing-seller basis, considering DDPCR’s audited total assets of RM33.6 million as of June 30, 2025. The original cost of DCSB’s investment in DDPCR was RM23.02 million, but it had been fully impaired in February 2025, resulting in no gain or loss aside from the RM1 cash consideration.
Upon completion of the transaction, expected within 25 business days, DDPCR will cease to be a joint venture of Dialog. The group noted that the disposal will not affect its share capital, major shareholders, or have any material impact on earnings, net assets, or gearing.
