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Thursday, July 31, 2014

Rozabil raises his stake in defence, O&G firm Destini to 20.45% (Star)

Destini Bhd’s major shareholder Datuk Rozabil Abdul Rahman (pic) has raised his direct and indirect stake in the company by 6.7% to 20.45% as he consolidates his shareholding.

Stock market data showed that 72 million Destini shares were traded in an off-market deal last Friday at 65 sen per share valued at RM46.8mil.

This was below the 70.5 sen closing price that day.

Rozabil, when contacted by StarBiz, confirmed that he had picked up the block of shares in Destini, which serves the defence, marine, aviation and oil and gas (O&G) industries.

“The company has been on an acquisition exercise recently and now it’s time for me to consolidate my shareholding to focus on delivering,” Rozabil, who is also Destini group managing director, said.

“I have confidence in the company and believe it is on the right track to deliver better profitability at year-end,” he added.

This brings Rozabil’s interest in the company via privately held vehicle BHP Capital Sdn Bhd to 20.45%.

Stock exchange filings showed that at last count on July 16, BHP Capital had a 13.75% stake in the company, or 109.2 million shares. Destini’s other substantial shareholder is Pascal Resources Sdn Bhd.

At the same time, a Bursa Malaysia filing in early July showed that Pascal Resources had ceased to be a substantial shareholder in the company when it disposed of 38 million shares, equivalent to a 4.78% stake, through an off-market deal and the open market.

Destini, formerly Satang Holdings Bhd, was lifted out of the Practice Note (PN) 17 category in April last year after a regularisation plan. Since then, it has been undertaking strategic acquisitions of various companies to diversify its income stream.

The stock had slipped into PN17 territory in May 2008 and had been suspended from trading for nearly three years from July 2009.

Earlier this year, the company completed the acquisition of a 100% interest in Samudra Oil Services Sdn Bhd from Kejuruteraan Samudra Timur Bhd for RM80mil in an all-share deal announced last year. The exercise marked its entry into the lucrative O&G sector. Samudra Oil is involved in the provision of tubular handling services in the O&G sector and is a Petroliam Nasional Bhd licence holder.
The company has also announced that it planned to buy the balance 49% stake in Vanguard Composite Engineering Pte Ltd, a Singapore-based company involved in the manufacturing, servicing and maintenance of lifeboats, life rafts and davit systems, that it had first bought into in 2012.

With a restructuring and shift into the commercial sector, the company hopes to rely less on government contracts to fuel growth, which contributed close to 80% of revenue in financial year 2012 (FY12).

In the first quarter ended March 31, it posted a net profit of RM3.08mil compared to RM2.41mil a year ago. For FY13, the company recorded a net profit of RM10.87mil, up from the RM7.05mil registered in the previous year.

Destini shares closed 1.42% down to 69.5 sen yesterday.

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