Destini through its subsidiary had accepted a letter of award, for an extension of the contract from the Ministry of Defence Malaysia for the supply of Non-proprietary aircraft spare parts for the Royal Malaysian Airforce, through the extension, the contract ceiling has been increased by RM222.2 million.
The salient terms of the contract which expired on 30 June 2023 have been extended for another two years from 1 July 2023 to 30 June 2025, with the additional ceiling is RM222,250,000.00 making the total value of the contract to RM403,750,000. The extension will now require Destini to provide a performance bond when receiving orders from the
Government. The performance bond shall amount to 2.5% for orders more than RM200,000.00 and 5.0% for orders more than RM500,000.00
Destini said the contract will not have any effect on the issued and paid-up share capital and the shareholding of the substantial shareholders of Destini as it does not involve the issuance of ordinary shares. The contract is expected to contribute positively to the earnings and net assets of Destini for the financial periods ending 31 December 2023 and the financial periods in the duration of the contract
