Boustead gets RM1.17bil Ministry contract

In a filing with Bursa Malaysia, the company said subsidiary Boustead Naval Shipyard Sdn Bhd (BNS) received the letter of acceptance (LOA) dated March 17 from the ministry.

PETALING JAYA: Conglomerate Boustead Holdings Bhd has bagged a RM1.17bil contract from the Defence Ministry for the supply of four units of littoral mission ships (LMS).

In a filing with Bursa Malaysia, the company said subsidiary Boustead Naval Shipyard Sdn Bhd (BNS) received the letter of acceptance (LOA) dated March 17 from the ministry.

“The contracted job, which is a collaboration between the Malaysian government and Chinese government, was awarded to BNS under direct negotiation, for collaboration with a partner shipyard in China at a price of RM1.17bil (including goods and services tax), to be implemented over four years effective from the date of signing of the LOA by BNS,” it said.

Boustead added that the LMS would be designed by the partner shipyard and the first two vessels would be built and delivered in China in 2019 and 2020, while the remaining two vessels would be built and delivered in Malaysia in 2021.

“The contract will have a positive effect on the earnings of Boustead for the financial year ending Dec 31, 2017, and will contribute positively to its future earnings,” Boustead said.