DESTINI FORMS JV WITH KTMB FOR RAIL MAINTENANCE

KUALA LUMPUR, Feb 24 , 2021 –Destini Berhad (“Destini” or “the Group”) has entered into an agreement with Keretapi Tanah Melayu Berhad (“KTMB”) to expand its capabilities in maintenance, repair and overhaul (“MRO”) services in the rail sector.

Both parties today inked a subscription, joint venture and shareholders agreement (“SJVSA”) that will see Destini acquiring a 70% stake in KTMB’s indirect wholly-owned subsidiary, ET Sdn Bhd (“ETSB” or “JVCo”) through its whollyowned subsidiary Destini Rail Sdn Bhd. The remaining 30% shareholding will be held by KTMB through its wholly-owned subsidiary, KTMB Technics Sdn Bhd.

The formation of the JVCo would enable Destini to expand its capabilities to provide heavy maintenance work on rail assets in Malaysia and potentially regional markets. In 2016, Destini expanded its scope of services in the rail sector through the supply of 35 motor trolleys for KTMB. The Group has since then put in efforts to strengthen its position in the rail sector by widening its expertise and scope of services for the rail industry.

This SJVSA signifies a progressive step forward for Destini to enhance its position in the rail industry as it expands its offerings to not only supply but also provide MRO services on rail related assets.

The stake in ETSB would enable Destini to participate in the Government’s National Railway Industry Development Program, which is an ongoing initiative under the Ministry of Transport to localise rail related products and services.

Destini’s management is of the view that this collaboration with KTMB would allow it to enhance the Group’s potential of securing supply and MRO service contracts in the rail sector both locally and internationally.