KUALA LUMPUR (Nov 11): Destini Bhd announced on Thursday (Nov 11) the company on Wednesday (Nov 10) entered into a heads of agreement (HOA) with Indonesia's state-owned PT Industri Kereta Api (PT INKA) to pursue opportunities in the railway business and related infrastructure projects in Malaysia, Indonesia and across the region.

In a statement to Bursa Malaysia on Thursday, Destini said the HOA stipulates the beginning of exploration or further cooperation where Destini and PT INKA will conduct discussions to develop a more detailed agreement to implement the HOA.

"The HOA is valid for 12 months. The proposed collaboration allows Destini Group to expand its footprint in the rail segment in Indonesia and regionally," Destini said.

In a separate statement from Jakarta, Indonesia attached to Destini's Bursa filing, Destini said it had entered into the HOA with PT INKA in conjunction with Malaysian Prime Minister Datuk Seri Ismail Sabri Yaakob's official visit to Indonesia.

It was reported on Wednesday that Ismail Sabri, who is on a three-day visit to Indonesia, met with the country's President Joko Widodo, who is popularly known as Jokowi, at Istana Bogor in Jakarta.

"Ismail Sabri arrived at the Indonesian capital on Tuesday (Nov 9) to begin his inaugural visit to the neighbouring country since (he was) sworn in as Malaysia's ninth prime minister on Aug 21, 2021," Bernama reported on Wednesday.

In Destini's attached statement, the group said it believes that the partnership with PT INKA will contribute positively to Destini's ambitions within the railway segment.

According to Destini, PT INKA is a rolling stock manufacturer that has supplied its products to various countries including Indonesia, Malaysia, Thailand, the Philippines, Bangladesh and Australia.

In railway-transportation terminology, rolling stock is defined as vehicles, which move along a railway.

At Bursa’s 12.30pm break on Thursday, Destini’s share price settled one sen or 3.92% lower at 24.5 sen, valuing the company at about RM406.7 million based on the group’s 1.66 billion issued shares.

The counter saw 15.45 million shares changing hands.