Saturday 22 Jun 2024
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KUALA LUMPUR (Sept 12): Boustead Heavy Industries Corp Bhd (BHIC) has secured a RM15.72 million worth of contract from the Ministry of Defence (Mindef) to supply Bofors 57mm/L70 guns to the Royal Malaysian Navy, as well as provide maintenance and training for the weapons.

The three-year contract was secured by its 51%-owned BHIC Bofors Asia Sdn Bhd (BBA), which accepted the letter of acceptance from the government dated Sept 1 for the supplies, BHIC's Bursa Malaysia filing on Monday (Sept 12) showed. The remaining 49% in BBA is owned by BAE Systems Bofors Holdings Sdn Bhd.

BHIC holds the BBA stake via BHIC Defence Technologies Sdn Bhd, a wholly owned unit of Boustead Penang Shipyard Sdn Bhd, which is in turn wholly owned by BHIC.

BHIC said a formal contract between the ministry and BBA will be signed soon.

On Monday, BHIC's stock closed unchanged at 34.5 sen, bringing it a market capitalisation of RM84.49 million. Year to date, the counter has tumbled 24.41%, following news that its unit, Boustead Naval Shipyard, had yet to deliver any of the six littoral combat ships worth RM9 billion that the government commissioned in 2014, despite some RM6 billion having been paid to the unit.

Edited ByTan Choe Choe
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