Destini

It is believed to have several institutional funds both foreign and local for its fund raising exercise via private placement, with proceeds raised to go towards expanding the group’s next phase of growth in the oil and gas business.

It was reported that institutional investors ha solicited interest at 60 sen per share of 10% of Destini’s shares.

Samudra is a substantial shareholder of Destini with a 31.6% stake. The transaction came was part of the deal in Aug 2013 to acquire Samudra’s 100% stake in Samudra Oil Services Sdn Bhd for some rm80 million.

The deal has resulted in Samudra triggering the PN17 condition as it no longer has a major business.

Samudra Oil which is involved in tubular handing services, contributed 88% to the group’s revenue.

Samudra intends to maintain its listing status which has 12 months from April 2014 to regularize its condition.

Samudra also has a 17.12% stake in Destini.

Destini’s MD Datuk Rozabil has a 23.1% stake in Destini. Datuk Rozabil Abdul Rahman, the head of UMNO Youth in Arau, Perlis.

Kretam Holdings Bhd CEO Datuk Freddy had emerged as substantial shareholder in the company with a 6.86% stake. He is also the single largest shareholder of BornOil with a 8.85% stake.

Observers noted that Destini which exited the PN17 status in 20132 may not have the financial muscle for a cash purchase of Samudra. While the EPS will be diluted following a new share issue, the non cash deal will not put further strain on its balance sheet.

Destini’s borrowings stood at rm11.21 million in FY2013.
As such fresh funds from new investors will help Destini to go a long way.

Destinit’s venture into oil and gas business with the acquisition of Samudra Oil will enable the group to move into its second level of growth after having expanded its marine and aviation operations.

The company hopes that the Samdura Oil buy will enable it to become a on stop centre for integrated O&G engineering solution services and further boost its position a a leading player in the local industry.

Samudra Oil would start contributing to the group’s earnings by end 2014.

Expects half of the revenue contribution to be driven by Samudra Oil while its marine and aviation divisions will contribute 25% each.

Samudra Oil’s principal market is in Malaysia.

Destini is still waiting for the EASA certification which will allow it to shift its focus to commercial contracts in its aviation division rather than relying on government contracts.

Currently (April 2014), most of the aviation contracts are with the government, while its marine division has gone totally commercial.