Boustead Heavy Industries Corporation Bhd (BHIC) has announced today the receipt of contract from Defence Ministry, on behalf of Malaysian government by BHIC Bofors Asia Sdn Bhd (BBA) for the supply and delivery of spares, maintenance and trainings for the Royal Malaysian Navy’s Bofors 40MM L70 gun.
BBA, is a joint venture between BHIC Defence Technologies Sdn Bhd, a wholly-owned subsidiary of the BHIC and BAE Systems Bofors Holdings Sdn Bhd, each with 51% and 49% stake in the JV company respectively.
In a Bursa filing today (Dec 18), it said that on Dec 11, BBA had signed a further contract ending on Dec 31, 2025, for a ceiling contract value of RM21.1 million.
BBA has received the letter of acceptance (LOA) on Dec 24, 2020 and the signed contract on Apr 19, 2020, from the Defence Ministry, on behalf of Malaysian government, for the renewal from Jan 1, 2021 with a tenure of three years until Dec 31, 2023 for a ceiling value of RM14.1 million.
“A supplementary contract is signed on Jan 3, 2023 for an additional ceiling of RM7 million for the same tenure.
“BBA had on Dec 11, 2023, signed further contract for a further period of two years and now extended for another two years until Dec 31, 2025 at the same ceiling contract value of RM 21.1 million,” it said.
BHIC added: “Further, Rozi Baharudin is BHIC and BBA director, and Ahmad Fazril Mohd Fauzi is the CFO for BHIC as well as a director for BBA.
“Save for the interest of BHIC in BBA, none of the directors or substantial shareholder of the company shareholders of the company, or persons connected with them have any interest, direct or indirect in the LOA,” it said.
