The Board of Directors of the Company is pleased to announce that the Ministry of Defence Malaysia (MINDEF) has approved the increase of Man Hour Rate and extended the contract entered with Destini Prima Sdn Bhd (Formerly known as Satang Jaya Sdn Bhd), a wholly-owned subsidiary of the Company in relation to the maintenance of safety and survival equipments for Tentera Udara Diraja Malaysia (TUDM) for an additional two (2) years from 1 October 2011 to 30 September 2013 by utilised the balance of the existing ceiling limit and maintained a total combined limit of RM562.5 million.
The extension of contract is not expected to have any material effects on the share capital and shareholding structure of the Company. However, it is expected to have positive contribution to the earnings per share, net assets per share and gearing of the Destini group.
There are no significant risks in relation to the extended of contract.
None of the Directors and/or substantial shareholders of the Company or persons connected to the said Directors and/or substantial shareholders have any direct or indirect interest in the abovesaid contract.
This announcement is dated 22 November 2011.