Destini bags RM95m maintenance services contract

by **Cals** Fri 08 Nov 2013, 13:39

Business & Markets 2013

Written by theedgemalaysia.com

Friday, 08 November 2013 10:29

KUALA LUMPUR: Destini Bhd (Destini) has been awarded a RM95.03 million contract for the provision of the first line maintenance services for the safety and survival equipment for the Royal Malaysian Air Force (RMAF).

In a filing with Bursa Malaysia yesterday, it said Destini Prima Sdn Bhd (DPSB), a wholly owned subsidiary of Destini, had accepted a letter of award from the Ministry of Defence Malaysia to provide maintenance services to the RMAF.

“The board of directors, after due consideration, is of the opinion that the contract is in the best interest of the group.

The contract being incurred in the ordinary course of business, is not subject to the approval by the shareholders,” it said.

The contract is for three years commencing from Oct 3 to Oct 2, 2016 and is not expected to have any material effects on the share capital and shareholding structure of the company.

It is expected to have positive contribution to the earnings per share, net assets per share and gearing of the group.

There are no significant risks other than operational risks associated with the contract.

Destini, formerly known as Satang Bhd, has been in the news of late.

Destini last Friday sealed a deal to buy out Samudra Oil Services Sdn Bhd, a wholly owned subsidiary of Kejuruteraan Samudra Timur Bhd for RM80 million.

The acquisition will be fully satisfied via the issuance of 228.6 million Destini shares at an issue price of 35 sen per share, the company said. Destini closed at 36.5 sen yesterday.

Samudra Oil is the sole local player in the provision of tubular handling and running services for the oil and gas industry. Its clients include global oil and gas players such as Petronas Carigali Sdn Bhd, Shell Malaysia, ExxonMobil Exploration and Production Malaysia Inc, MDC Oil and Gas Ltd, Talisman Malaysia Ltd and Petrofac Ltd.

This article first appeared in The Edge Financial Daily, on November 8, 2013.