Friday 29 Mar 2024
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KUALA LUMPUR (March 20): Boustead Holdings Bhd updates that it has secured a letter of acceptance (LoA) from the Defence Ministry to supply four vessels to the Royal Malaysian Navy, and that the deal is valued at RM1.17 billion.

In its filing with Bursa Malaysia today, Boustead said its subsidiary Boustead Naval Shipyard Sdn Bhd (BNS) had received the LoA dated March 17, 2017 to supply four units of Littoral Mission Ships.

The contract is a collaboration between the Malaysian and Chinese governments, and was awarded to BNS under direct negotiation, it said.

It will be collaborating with Partner Shipyard in China for the four-year job. The ships will be designed by Partner Shipyard, with the first two vessels to be built and delivered in China in 2019 and 2020, and the remaining two vessels to be built and delivered in Malaysia in 2021.

Today's update follows Boustead's previous announcement on Nov 4 last year that BNS had received a non-binding letter of intent (LoI) dated Oct 26, 2016 from the government to supply the vessels.

"The contract will have a positive effect on the earnings of BHB Group for the financial year ending Dec 31, 2017, and will contribute positively to its future earnings. None of the directors or substantial shareholders of the company, or persons connected with them, has any interest, direct or indirect, in the contract," the group said.

At 3.20pm, Boustead's share price was 2 sen higher at RM2.80, valuing the group at RM5.66 billion.

 

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