Destini - acquisition of Samudra Oil

It expects the acquisition of Samudra Oil Services Sdn Bhd to start contributing to the group’s earnings by end of 2014. It buys the entire stake in Samudra Oil from KSTB for rm80 million via the issuance of 228.6 million new shares at rm0.35 each.

The shares represent about 39% of Destini’s enlarged share capital.

Destini was removed from the PN17 status after the group regularized its financial condition in April 2013.

The group is looking at about half of its revenue contribution to be driven by Samudra Oil, while its marine and aviation divisions will contribute 25% each.

Samudra Oil provides tubular handling equipment services as well as tubular inspection and maintenance services for offshore oil rigs.

Its principal market is currently (Feb 2014) in Malaysia with a 2% revenue comes from Vietnam.

On Destini’s plans to shift its focus to commercial contracts in its aviation division rather than relying on government contracts, the group is pending its EASA certification.

Currently (Feb 2014), most of the aviation division’s contracts are with the government, while its marine division has gone totally commercially. Both divisions have an order book of rm200 million.