Boustead Heavy Industries Corporation has entered into a share purchase agreement with Ocean Sunschine Berhad for the disposal of 20.77% stake in Boustead Naval Shipping held by indirect wholly owned PISB for a cash consideration of RM1.
The proposed disposal is subject to the terms and conditions of the SSA, upon completion of the proposed disposal, BHIC will cease to hold any equity interest in BNS.
As at the date of this announcement, the total issued share capital of BNS is RM130,000,003 comprising of 130,000,002 ordinary shares and 1 special share. BNS is an associate company of BHIC. The principal activity of BNS involves construction, repair and maintenance of naval ships, weapons and electronics, design and engineering, fabrication of steel structures and commercial shipbuilding,
The disposal amount was derived in respect of the latest audited net liabilities position of BNS of RM848,451,000.00 as at 31
December 2022.
BHIC decided to dispose BNS to facilitate the decision of the Government of Malaysia, through the Ministry of Finance’s letter to the Company to acquire 100% of shares in BNS in order to ensure the completion of the Littoral Combat Ship project. It is also formed as part of the Company’s operational and organizational restructuring to streamline and re-align entities within the Company and its relevant subsidiaries, while ensuring that BNS is able to complete the construction and delivery of the LCS to the RMN within the stipulated timeframe pursuant to the LCS contract.
Further to the above, the introduction of a new strategic shareholder into BNS namely OSB, is in consonance with BNS’ plans to strengthen its business and operations in relation to the construction, repair, and maintenance of naval ships and commercial shipbuilding.
