BHIC receives LOA to supply radar systems for €16.96m

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KUALA LUMPUR (Sept 17): Boustead Heavy Industries Corporation Bhd (BHIC)’s subsidiary Contraves Advanced Devices Sdn Bhd (CAD) has received and accepted a letter of award (LOA) from Boustead Naval Shipyard Sdn Bhd for the supply of Radar Electronic Support Measure Systems and related services, worth €16.96 million (RM70.74 million).

In a filing with Bursa Malaysia, BHIC said the contract was for the work to design, construct, equip, install, commission, integrate, test and trial for six units of Second Generation Patrol Vessels with Littoral Combat capabilities (Frigate Class), which was ordered by the Royal Malaysian Navy from Boustead Naval Shipyard.

As Boustead Naval Shipyard is an associated company of BHIC and a subsidiary of Boustead Holdings Bhd, the awarded works constitute a recurrent related party transaction, for which BHIC said a shareholder mandate was obtained at its Annual General Meeting on April 03.

“The awarded works are expected to have a positive impact on the earnings of the company for the financial year ending December 2014, and subsequent financial years, as the tenure of the awarded works is long term in nature,” said BHIC.