Destini buys paramilitary vessel maker for RM90mil

KUALA LUMPUR: Destini Bhd has bought Destination Marine Services Sdn Bhd (DMS) for an indicative value of RM90mil to be paid via a combination of issuance of new Destini shares at 70 sen each and/or cash.

DMS makes paramilitary boats and vessels, and provides ship repair and marine-related engineering services.

Destini, an engineering solutions provider, said in a statement that the acquisition came with a profit guarantee of RM10mil in 2015 and RM15mil in 2016.

Destini managing director Datuk Rozabil Abdul Rahman said the acquisition was in line with the company’s plans to expand the marine division further.

“It is earnings accretive and provides many synergistic benefits to thecompany.

“We are now able to offer a wider range of marine products and maintenance services to include paramilitary vessels used for patrolling exercises and search and rescue operations. Our technical capabilities would also be enhanced through cross sharing of technical knowledge and expertise in handling these type of vessels,” he said.

Destini said boat building and ship repair services would be carried out at DMS’ shipyards in Port Klang, Selangor and Bakar Batu, Johor, capable of handling boats weighing up to 450 tonnes.

Currently, Destini is involved in the manufacture of lifeboats through its unit Vanguard Composite Engineering Pte Ltd, which supplies its products to the marine as well as oil and gas companies.

Destini closed at 67.7 sen, up 1.5 sen, on Wednesday.

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