12 Jul 2013 11:19

KUALA LUMPUR, July 10 (Bernama) -- Destini Bhd has entered into four separate conditional sale and purchase agreements for the proposed acquisitions of the entire paid-up capital of four companies at a total purchase consideration of RM39.117 million.

The companies are Techno Fibre Australia Pty Ltd (RM1.40 million), Techno Fibre Middle East Marine Services FZE (RM17.384 million), Technofibre International Sdn Bhd (RM4.0 million) and Techno Fibre (S) Pte Ltd (RM16.333 million) which will be satisfied entirely via the issuance of shares.

In a filing to Bursa Malaysia, Destini said it would issue 130.390 million new ordinary shares of 10 sen each at an issue price of 30 sen per share.

The company has also proposed a bonus issue of 242 million free warrants on the basis of two free warrants for every three existing shares held on an entitlement date to be determined later.

Destini is an investment holding and the principal activities of its subsidiary companies are the provision of maintenance, repair and operation services for safety, survival and rescue equipment for the defence, commercial aviation and marine industries.

It said the proposed acquisitions were in line with the company's expansion strategy to go into the marine industry, which would enable it to diversify the business geographically as well as leverage on the aforesaid companies to gain access to the international oil and gas vessels and commercial vessels.

In addition, it said the enlarged Destini Group was expected to have improved operational, procurement and administrative efficiency via cross selling, pooling of knowledge and experience, cross sharing of best practices, combined purchasing and service centralisation

Moving forward, it said the proposed acquisitions were expected to contribute positively to the group and enhanced the shareholders' value in the medium and long term.