DESTINI COMPLETES ACQUISITION OF DESTINI SHIPBUILDING AND ENGINEERING SDN BHD

KUALA LUMPUR, 16 December 2015 – Destini Berhad (“Destini” or the “Group”), a leading Malaysian integrated engineering solutions provider, today announced that it has completed the acquisition of Destini Shipbuilding and Engineering Sdn Bhd (“DSE”).

DSE is a manufacturer of paramilitary boats and various types of sizes of vessels. It also provides ship repair and marine-related engineering services.

Managing Director of Destini Berhad, Dato’ Rozabil Abdul Rahman said, “DSE is a compelling strategic fit for Destini. It gives us the expanded capacity in terms of a larger ship building facility and a wider range of marine products and maintenance services. Hence, we would be able to take on larger and more technically complex jobs for a larger customer base.”

“We also view this acquisition to be timely as it comes with a profit guarantee totalling RM25 million over two years. As Destini is a diversified player with interests in the aviation, marine and oil and gas sectors, the earnings contribution from this acquisition will boost the Group’s overall financial performance.”

“We look forward to the successful integration of our marine business units, namely Vanguard, Techno Fibre and DSE. We aim to generate synergies across these different units to capture the growing market opportunities. This will strategically position the Group for future growth in the global marine sector.”

Destini had acquired the entire stake in DSE for a purchase consideration of RM90.0 million which were satisfied by way of combination of cash payment of RM15.0 million and issuance of 107,142,857 new Destini shares at an issue price of RM0.70 each.

Source : Destini Berhad

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