KUALA LUMPUR: Destini Bhd has formed a 50:50 joint venture (JV) company with TH Heavy Engineering Bhd to undertake an offshore patrol vessel project for the Malaysian Maritime Enforcement Agency (MMEA).

In a filing with Bursa Malaysia, Destini said the JV company known as Gigih Integrasi Sdn Bhd was set up by its wholly-owned subsidiary Destini Shipbuilding and Engineering Sdn Bhd and TH Heavy’s wholly-owned unit THHE Fabricators Sdn Bhd.

This follows an agreement on Oct 27 between Destini and TH Heavy to form an unincorporated JV to procure the contract in relation to the works related to the supply of three offshore patrol vessels for the MMEA and thereafter the execution of the works, on a negotiated proposal basis.

“Further to the unincorporated JV proposal, the government of Malaysia has suggested that TH Heavy establish an incorporated JV with its partner to undertake the works,” said Destini.

Gigih Integrasi has an authorised share capital of RM400,000, and an issued and paid-up capital of RM2. 

Shares in Destini closed 3.5 sen or 5.6% higher at 65.5 sen yesterday, with a market capitalisation of RM756.53 million.

TH Heavy’s share price, meanwhile, closed unchanged at 10 sen, with a market capitalisation of RM112.11 million.