KUALA LUMPUR (Dec 5): Destini Bhd (KL:DESTINI) said it is acquiring Australia-based rail component remediation services provider Trovon Group Pty Ltd, in a bid to strengthen its rail maintenance capabilities and expand its global presence.

Destini will pay A$100 (RM285) for the acquistion, and assume A$3.25 million of Trovon’s outstanding debt and inject an additional A$1 million for working capital, according to a bourse filing on Thursday.

Destini said the acquisition will be executed through its wholly-owned subsidiary, TF Corp Pte Ltd, with completion expected by the end of 2024.

Trovon, founded in 2015 as Sabre Rail Australia, provides maintenance services for mainline, high-speed, freight, metro and light rail systems, focusing on brakes, heating, ventilation and air conditioning (HVAC), and train doors.

Trovon’s order book currently stands at A$43.35 million, with A$31.95 million yet to be billed across contracts in Australia, New Zealand and Malaysia.

Destini said it sees potential expansion opportunities into Singapore, Dubai and China through its existing Techno Fibre group network.

Destini’s core business focuses on maintenance, repair and overhaul (MRO) services for military aircraft, supplying equipment to armed forces, manufacturing and servicing lifeboats, offering marine safety equipment, and delivering engineering, procurement, construction and installation services for renewable energy systems.

The company also provides MRO services for the rail sector and tubular running services for the energy industry.

Despite Trovon’s A$4.81 million loss in FY2023, Destini said it values the firm's technical capabilities, certifications and strong global presence.

“This acquisition represents a transformative opportunity for Destini to strengthen its rail maintenance capabilities and expand its global presence," said Destini executive director Ismail Mustaffa.

“Trovon's established track record in Australia and New Zealand, combined with their OEM (original equipment manufacturer) certifications and advanced AI-powered maintenance solutions perfectly aligns with our strategic vision for growth in the rail sector,” he added.

Destini’s share price closed unchanged at 32 sen on Thursday, valuing the company at RM159.74 million.