SHAH ALAM: The nationalisation of Boustead Naval Shipyard (BNS) – the builder of the LCS – has been delayed again, for the third time. The new deadline is now December 31, extended from the previous deadline of December 1.
I am pretty sure that the process will be delayed for the fourth time as December 31 comes at the end of 2023 and it is unlikely anyone will want to work – at least at full throttle – during the holiday period. I stand to be corrected, of course.
The full announcement by Boustead Heavy Industries Corporation Bhd.
PROPOSED DISPOSAL OF 27,000,001 ORDINARY SHARES IN BOUSTEAD NAVAL SHIPYARD SDN. BHD. (BNS) HELD BY PERSTIM INDUSTRIES SDN. BHD. (PISB OR VENDOR), AN INDIRECT WHOLLY OWNED SUBSIDIARY OF BHIC, FOR A CASH CONSIDERATION OF RM1.00 (HEREINAFTER REFERRED TO AS THE PROPOSED DISPOSAL)
The terms used herein shall have the same meaning as those defined in the announcement dated 21 August 2023.
We refer to the announcements dated 29 May 2023, 21 August 2023, 4 October 2023 and 1 November 2023 in relation to the Proposed Disposal.
Pursuant to the SSA and the subsequent agreements between the Parties, the Conditional Period for the fulfilment of the Conditions Precedent for the Proposed Disposal was extended up to 1 December 2023 (“Second Extended Conditional Period”). As the Parties require additional time for the fulfilment of the Conditions Precedent, the Company and the Purchaser have mutually agreed to extend the Second Extended Conditional Period of the SSA for a further period up to 31 December 2023 (“Third Extended Conditional Period”).
For avoidance of doubt, all other terms, and conditions of the SSA remain unchanged.
This announcement is dated 1 December 2023.
Although the cost of the take-over is RM1, the full cost of the nationalisation of BNS – which include liabilities and debt is RM1.86 billion. The LCS project is now to cost RM11.2 billion, an increase of RM2.098 billion from the original ceiling contract price of RM9.128 billion.
So, the whole cost of the project (minus the procurement cost of the SAM, torpedoes and other ammunition) is RM13.2 billion.
— Malaysian Defence