THHE buys Destini's stake in ship building joint venture

KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) is buying out its 51% partner Destini Bhd's stake in a ship building company for RM121,131.

"The proposed acquisition of THHE Destini Sdn Bhd (TDSB) is in line with the Group’s intention to grow its ship building and ship repair business," THHE said in a filing with Bursa Malaysia today.

The deal, THHE said, will also allow the Group to "further strengthen its technical capabilities and track record in ship building and ship repair businesses which will open up more business opportunities in the ship building and ship repair sectors."

THHE currently owns 49% of TDSB.

Meanwhile, Destini said the disposal would allow the loss making company to shift its focus from marine manufacturing to marine services.

"The proposed disposal will also enable Destini to build and strengthen its other divisions such as energy and rail & land transport, which the Group is currently participating actively within the industries," it said.