Boustead bags RM1.17b littoral mission ship deal

PETALING JAYA: Boustead Holdings Bhd’s (BHB) subsidiary Boustead Naval Shipyard Sdn Bhd (BNS) has received and accepted the letter of acceptance (LoA) from the Ministry of Defence Malaysia for a contract to supply four units of littoral mission ships for RM1.17 billion.
The contract, which is a collaboration between the government of Malaysia and China, was awarded to BNS under direct negotiation, for collaboration with a partner shipyard in China, to be implemented over four years effective from the date of signing of the LoA by BNS.
The littoral mission ships will be designed by the partner shipyard and the first two vessels will be built and delivered in China in 2019 and 2020, while the remaining two vessels will be built and delivered in Malaysia in 2021.
The contract will have a positive effect on the earnings of BHB group for the financial year ending Dec 31, 2017, and will contribute positively to its future earnings.
Last year, BNS received a non-binding letter of intent dated Oct 26, 2016 from the Ministry of Defence Malaysia for the supply of four littoral mission ships for the Royal Malaysian Navy.