BHIC unit gets one-year extension to Mindef helicopter maintenance contract

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KUALA LUMPUR (July 1): Boustead Heavy Industries Corp Bhd (BHIC) has seen its helicopter maintenance contract with the Ministry of Defence (Mindef) extended for another year until 2021.

In a bourse filing, BHIC said that its unit BHIC AeroServices Sdn Bhd (BHICAS) yesterday received a letter from Mindef for a one-year extension to its contract to provide integrated maintenance and logistic support services for three Dauphin AS365N3 helicopters operated by the Malaysian Maritime Enforcement Agency.

The contract is now from July 1, 2016 to June 30, 2021 with a new total ceiling contract value of RM70.74 million.

"Apart from the extension of the contract period and revision of contract value, there are no significant differences between the substance of the contract and the extended LOA.

"The LOA will contribute positively to the earnings of BHIC group for the financial years ending Dec 31, 2020 and Dec 31, 2021," it said.

BHICAS is a joint venture among BHIC Defence Technologies, which controls a 51% stake, Prestige Pillar Sdn Bhd (controlling a 30% stake) and Airbus Helicopters Malaysia Sdn Bhd, controlling a 19% stake.

The contract was renewed last year for one year on July 4, 2019.

Shares in BHIC went unchanged at noon market close at 70.5 sen, valuing it at some RM175.16 million. It saw 41,300 shares done.