Boustead secures RM1.17b RMN contract

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.