THHE, Destini advance after JV secures RM738.9m govt contract

THHE, Destini advance after JV secures RM738.9m govt contract
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KUALA LUMPUR (Jan 20): TH Heavy Engineering Bhd (THHE) and Destini Bhd shares rose this morning after a joint venture (JV) between the two companies bagged a RM738.9 million contract from the government to supply three offshore patrol vessels (OPVs) for the Malaysian Maritime Enforcement Agency (MMEA).

At 9.12am, THHE jumped 9.68% or 1.5 sen to 17 sen with 22.73 million shares traded, while Destini gained 2.19% or 1.5 sen to 70 sen with 795,100 shares done.

In a joint statement yesterday, Destini and THHE said the contract was secured by THHE Destini Sdn Bhd, which is 51% owned by Destini and 49% by THHE.

Destini managing director Datuk Rozabil Abdul Rahman said with the latest contract win, Destini has secured shipbuilding contracts from MMEA worth more than RM1.1 billion to date.

THHE chief executive officer Suhaimi Badrul Jamil said the OPV contract award marks the beginning of the group’s diversification strategy.

Destini and THHE said the 83-metre vessels will be the largest vessels to date in the MMEA fleet.