Destini to buy DMS for RM90m

PETALING JAYA: Destini Bhd has entered into a heads of agreement (HOA) with three parties to buy Destination Marine Services Sdn Bhd (DMS), involved in boat building, ship repair and marine-related engineering services, for RM90 million.
Destini said the acquisition is a gateway to further increase its range of products and diversify its supply of lifeboat segment by venturing into the supply, testing and commissioning of paramilitary boats and its related MRO services to a different market segment.
"At the same time, Destini would be able to set up its manufacturing facility in Malaysia at the Shipyard Land with ready main infrastructures which is currently owned by DMS," it said.
The purchase consideration will be satisfied via new shares at 70 sen each in Destini and/or cash.
Under the HOA, Destini will also be given a profit guarantee of RM10 million for 2015 and RM15 million for 2016 to Destini, arising from the project.
Pending the completion of the proposed acquisition, DMS will proceed to award a sub-contract from its project to Destini.
On June 15, 2015, DMS received a RM381.3 million contract from Agensi Penguatkuasaan Maritim Malaysia to supply, deliver, test and commission six patrol vessels which it will sub-contract to Destini valued at RM372.3 million.