Boustead se­cures RM1.17b RMN con­tract

New Straits Times - - Business -

KUALA LUMPUR: Boustead Hold­ings Bhd has se­cured a let­ter of ac­cep­tance (LoA) from the De­fence Min­istry to sup­ply ships to the Royal Malaysian Navy (RMN) for RM1.17 bil­lion.

Boustead said its sub­sidiary Boustead Naval Ship­yard Sdn Bhd (BNS) had re­ceived the LoA dated March 17 to sup­ply four lit­toral mis­sion ships.

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

It will be col­lab­o­rat­ing with a ship­yard in China for the fouryear con­tract. The ships will be de­signed by the ship­yard, with the first two to be built and de­liv­ered in China in 2019 and 2020, and the re­main­ing two to be built and de­liv­ered in Malaysia in 2021.

The state­ment fol­lows Boustead’s an­nounce­ment on Novem­ber 4 last year that BNS had re­ceived a non-bind­ing let­ter of in­tent from the gov­ern­ment to sup­ply the ships.

Boustead share price closed 1.09 per cent, or half a sen, lower to 45.5 sen yes­ter­day.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.