BHIC slips to end May low on MinDef's RM147m claim


  • Business
  • Wednesday, 12 Jul 2017

Filepix of KD Tunku Abdul Rahman, a Scorpene-class submarine.

KUALA LUMPUR: Shares of BOUSTEAD HEAVY INDUSTRIES CORP Bhd (BHIC) fell to a low of RM2.10 – the lowest since end-May – on news about the RM147.7mil claim sought by the  Defence Ministry (MinDef).

At 11.34am, it was down nine sen to RM2.10. There were 26,500 shares done at prices ranging from RM2.10 to RM2.18.

The FBM KLCI fell 0.37 of a point or 0.02% to 1,754.66. Turnover was 720.26 million shares valuedat RM473.48mil. There were 326 gainers, 289 losers and 335 counters unchanged.

StarBiz reported BHIC could take a hit in the event the company fails in its appeal against a liquidated damages claim by MinDef.

MinDef is seeking a liquidated damages compensation totalling RM147.7mil from Boustead DCNS Naval Corporation Sdn Bhd (BDNC) –  related to a breach of obligations under the in-service support for the navy's Scorpene submarines contract. It was awardsed in 2010.

BDNC is a joint venture between BHIC Defence Technologies Sdn Bhd, a unit of BHIC, and DCNS SA. BHIC has a 60% stake in BDNC via BHIC Defence Technologies.

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