Destini buys Indonesian firm, diversifies into port operations

PETALING JAYA: Destini Bhd is diversifying its business into the provision of jetty/port operations and related services to mining companies.

This comes after its wholly owned subsidiary Destini Armada Pte Ltd (DAPL) entered into a conditional share sale agreement with Indonesia-based PT Berkah Sadaya Adikarya to acquire 99.9% of port services provider PT Muara Badak Perkasa (PT MBP) for S$4 million (RM12 million).

PT MBP is involved in the provision of jetty/port operations related services to companies involved with mining activities in East Kalimantan, Indonesia. It has several secured contracts from various coal mining companies in the vicinity for the use of stockpile and jetty facilities for a period of 10 years.

“PT MBP is well positioned to grow with the growth of mining activities in Indonesia. This would also present other opportunities to DAPL, to offer its fabrication and heat exchanger services for the manufacturing of barges, coal processing plants, piping works and other fabrication works for the mining and other industries such as the oil palm in the Indonesian market,” Destini said in a Bursa Malaysia filing yesterday.

The purchase sum of RM12 million was arrived at a willing-buyer-willingseller basis after taking into consideration a profit guarantee of

S$2.5 million a year to DAPL for the next two years by PT Berkah Sadaya.

It will be satisfied through the issuance of 4.9 million new ordinary shares in DAPL at an issue price of

S$0.81.

Upon completion of the proposed acquisition, PT Berkah Sadaya Adikarya will emerge as the largest shareholder of DAPL, with a 55% equity interest. Simultaneously, Destini’s equity interest in DAPL will be diluted to 45%.

The proposed acquisition is expected to be completed in the third quarter this year.

Destini is presently involved in the provision of maintenance, repair and overhaul services for the aviation, marine, oil and gas and land system industries.

“It has been Destini’s strategy to diversify into other related businesses with growth prospects in order to diversify and sustain the group’s earnings,” it noted.

Trading in Destini’s shares was suspended between 9am and 10am yesterday. The stock closed 1 sen lower at 20 sen on 2.79 million shares done.