KUALA LUMPUR: Boustead Heavy Industries Corp Bhd’s (BHIC) joint venture (JV) with French naval systems developer DCNS SA has received a contract to provide refit services for two of Prime Minister’s Class Submarines for the Malaysian navy worth RM1.232bil.
BHIC told Bursa Malaysia that Boustead DCNS Naval Corp Sdn Bhd, a 60:40 JV between BHIC’s unit BHIC Defence Technologies Sdn Bhd and DCNS SA, had received and accepted a letter of acceptance (LOA) from the Government at a total dual currency contract price of 169.859 million euros (RM799.28mil) and RM432.404mil (inclusive of goods and services tax).
The contractual refit period for each submarine is 18 months from the respective start dates.
BHIC, which is 73.15% owned by the Armed Forces Fund Board (LTAT), said the LOA would have a material effect on the earnings of BHIC group for the financial year ending Dec 31, 2015, and will contribute positively to its future earnings.
It said none of the directors or substantial shareholders of the company, or persons connected with them have any interest, direct or indirect, in the contract.
BHIC shares fell 4 sen to RM2.12 on Monday.
Source: http://www.thestar.com.my/Business/Business-News/2015/11/16/BHIC-groups-subsidiary-bags-submarine-refit-contract/?style=biz
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