KSTB enters into HOA agreement with Destini

KSTB enters into HOA agreement with Destini
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Wednesday, 07 August 2013 14:58

KUALA LUMPUR (Aug 7): KEJURUTERAAN SAMUDRA TIMUR BHD [] (KSTB) has entered into a heads of agreement (HOA) with Destini Bhd in relation to the disposal of Samudra Oil for a total of RM80 million.

Samudra Oil is a wholly-owned subsidiary of KSTB which is principally involved in tubular handling and running services for the oil and gas industry.

In a filing with Bursa Malaysia today, KSTB said the disposal would be satisfied via the issuance of 228.6 million new shares to Destini for an issue price of 35 sen a piece.

"The proposed disposal provides an opportunity for KSTB to realise and unlock the value of its investment in Samudra Oil whilst enabling KSTB to participate in the future prospects and financial performance of Destini and its subsidiaries," said KSTB in its filing.

"The disposal is expected to enable KSTB to recognise a one-off net gain, the quantum of which will be determined after the disposal consideration is finalised between the respective parties," it added.

Under the terms of the agreement, the completion of the sale is set to take place within three months from today. Both parties will also have 45 days from today to carry out due diligence.