(Announcement pursuant to paragraph 9.04(f) of the Main Market Listing Requirements)

Dialog Group Berhad (“DIALOG” or “the Company”) wishes to announce that the Company and its wholly owned subsidiary, Dialog Pengerang Sdn. Bhd. (“DPengerang”) have received a Writ and Statement of Claim dated 18 April 2019 (“the Suit”) from Teguh Kemajuan Sdn. Bhd. (“TKSB”).

TKSB was the owner of a piece of land held under GRN82359 Lot 1208 Mukim Pengerang, District of Kota Tinggi, Johor, which was previously compulsorily acquired by the State Government of Johor as part of the land forming part of Pengerang Independent Terminals Sdn. Bhd. (“PITSB”)’s land. The land acquisition was completed in April 2013. PITSB, a joint venture company between DIALOG, Vopak Group and the State Government of Johor, is currently operating an independent storage terminal.

TKSB had challenged the compulsory land acquisition under a judicial review, which has been dismissed by the courts and TKSB has exhausted its rights of appeal. In addition to the judicial review, TKSB also challenged the original compulsory land acquisition price awarded. TKSB was successfully awarded a higher price in January 2018. However, TKSB is appealing against this decision at the Federal Court and the matter is pending the appeal.

TKSB is now claiming against the Defendants, amongst others, for conspiracy to injure TKSB by lawful and unlawful means, and/or unjust enrichment, and/or a claim based on constructive trust and the reliefs sought are, amongst others:

1. damages in the sum of US$1,354,262,406 (or its equivalent in Ringgit Malaysia at the time of judgment or payment) as the projected profits which would have been gained by TKSB if TKSB had not been deprived of the use and development of the land, exemplary damages; interests; costs and such further reliefs as may be just;

2. against PITSB, a declaration that PITSB is a constructive trustee for TKSB;

3. against PITSB, that it is and shall be liable to account to the Plaintiff for all incomes and profits it derives or may derive from its independent deepwater petroleum-storage terminal (“IDPT”) project (or for such parts or proportions of the same as may be considered fair and just by the Court).

   The case has been fixed for Case Management at the Johor Bahru High Court on 22 May 2019.

   The matter has been referred to DIALOG’s solicitors and DIALOG intends to pursue all available legal avenues to defend and challenge the claims. DIALOG believes that the claims are scandalous, frivolous, vexatious and amounts to an abuse of process of the Court.

   DIALOG is of the opinion that the Suit is not expected to have a material impact on the operational and financial position of DIALOG for the financial year ending 30 June 2019.

   Further announcements will be made as and when there are material developments on the case.

    

   This announcement is dated 30 April 2019.