KUALA LUMPUR: Destini Bhd plans to provide jetty and port operations to mining companies following its unit’s purchase of a stake in Indonesian company PT Muara Badak Perkasa (PT MBP) for S$4mil (RM12mil) via the offer of new shares.
The company said on Wednesday its unit Destini Armada Pte Ltd had entered into a conditional share sale agreement with PT Berkah Sadaya Adikarya to purchase 4,999 shares in PT MBP or 99.9% stake.
This will see Destini issue 4.90 million new Destini Armada shares at 81.63 Singapore cents each.
Upon completion of the proposed acquisition, PT Berkah Sadaya Adikarya will emerge as the largest shareholder of Destini Armada, with a 55.0% equity interest while Destini’s stake will be diluted to 45%.
“The purchase consideration of RM12mil was arrived at on a willing-buyer willing-seller basis, after taking into consideration the profit guarantee totalling to S$5mil provided by the vendor to Destini Armada for two financial years ending 2020 and 2021, ” it said.
This translated to a yearly profit guarantee of S$2.50mil (RM7.50mil) for each financial year.
Destini said the purchase consideration represents a price-to-earning (PE) multiple of about 1.6 times based on the yearly profit guarantee.
It said the purchase consideration of PT MBP also took into account the rationale and benefits expected to be accrued from the purchase of which include, amongst others, the geographical expansion in respect of the business operations of Destini Group by tapping into the provision of jetty/port operation related services in Indonesia.
Destini also said the other rationale was that existing contracts awarded for the use of stockpile and jetty facilities was about RM490.06mil and also the favourable global outlook of coal industry.