Boustead Heavy shares continue downtrend on RM147.7m claim

PETALING JAYA: Shares of Boustead Heavy Industries Corp (BHIC) continued its downtrend this morning, after announcing that its joint-venture company is facing a claim of RM147.7 million in damages by the Ministry of Defence over "breach of obligations".

At 10.59am, the shares fell 4.11% or nine sen, trading at RM2.10 with some 25,000 shares changing hands. It has a market capitalisation of RM539.15 million.

BHIC said it received a letter from the ministry claiming liquidated damages amounting to RM53.2 million and €19.3 million (RM94.5 million) against Boustead DCNS Naval Corporation Sdn Bhd (BDNC) under the in-service support for the Royal Malaysian Navy Scorpene submarines contract.

BDNC is 60% owned by the group's wholly-owned unit BHIC Defence Technologies Sdn Bhd, and the remaining is held by France's DCNS SA.