Boustead Holdings which accepted the Letter of Acceptance from the Ministry of Defence Malaysia for awarding Boustead DCNS Naval Corporation a contract for provision of In-Service Support for the Prime Minister’s Class Submarines has now received an additional contract worth RM159 million.
BDNC is a joint venture company between BHIC Defence Technologies Sdn. Bhd. (60%) and a wholly owned subsidiary of BHIC, and Naval Group (40%). The company received the additional LOA with a 1 year extension of the contract starting 1 January 2021 to 31 December 2021 for a total value of RM159,146,000.
According to the Bursa filing, apart from the extension of the Contract period and revision of the contract value, there were no significant differences between the substance of the contract and the additional LOA. This latest announcement will be seen to contribute positively to the earnings of BHIC Group for the financial year ending 31 December 2021.
Boustead Holdings has been on a transformation journey with new CEO Dato Seri Shazali Ramly, who came on board to turn the group around and make it profitable. An astute corporate maverick, Shazali has instituted reforms and strategic alignment within the group that was often seen disjointed in its investment. He has also introduced a 3 year group wide plan termed EDGE 20 which comprises 20 transformation initiatives aimed to achieve the Group’s aspirations, focused on funding, structural, operational and corporate governance areas.