BNS Nationalisation Delayed Again, Fourth Time

The LCS major equipment detailed by RMN in 2016. RMN graphic

SHAH ALAM: Boustead Naval Shipyard (BNS) nationalisation has been delayed again, for the fourth time. Malaysian Defence has expected this as the third deadline for the exercise – BNS being sold to a MOF Incorporated company, Ocean Sunshine Bhd – was on December 31.

Boustead Heavy Industries Corporation Bhd (BHIC) which is selling its shares in BNS had also expected it, stating last month that it expects the exercise to be completed in the first quarter of 2024.

The announcement by BHIC to Bursa Malaysia dated today (January 2, 2024).

We refer to the announcements dated 29 May 2023, 21 August 2023, 4 October 2023, 1 November 2023 and 1 December 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 31 December 2023 (“Third 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 Third Extended Conditional Period of the SSA for a further period up to 31 January 2024 (“Fourth Extended Conditional Period”).

For avoidance of doubt, all other terms, and conditions of the SSA remain unchanged.

This announcement is dated 2 January 2024.

Hopefully, the exercise will be completed before any moves to set up a new government is successful. Otherwise, we should just cut our losses and shut down the LCS project.

HT to DM.

— Malaysian Defence

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4 Comments

  1. So Tun is going all out burning money to topple Anwar eh?

    Will he succeed?

    Governments must not change with buyout of corrupt leaders, but must be through the oficial vote of the people.

  2. With all these delays, look like the LCS project would not start. No need to wait. Just let thecyard flounder . Then buy iver the yard 9nly n ge5 the project moving

  3. From their EGM, its quite obvious that BNS nationalisation will drag out as it wasnt even on their agenda to vote. Their Board are still in dreamland expecting more tongkats from the Govt but not wanting to let go of their asset (BNS) as trade off. This is utter hubris and selfserving selfishness to want their cake & eat it. The Govt, whoever will be, must preclude that any financial assistance will be forthcoming AFTER that BNS have been handed over back.

    The MOF should go to the rakyat and explain this matter and why LTAT might be in a tight finances if Boustead Group has to declare a loss, perhaps instead of giving money to BG what they could do is finance LTAT yearly dividend in liew of BG taking the hit. This would allow LTAT to make sweeping management changes & restructuring with a capable leader to drive forward (see Air Asia before & when Tony came in).

    As to whether shutting down LCS is an option, you know as well it aint going to happen, just as with the long drawn Samudera training ships saga, the Govt will take whatever means & whatever time it takes to get it completed & delivered.
    @matsom
    However the current Administration didnt get voted into Govt with clear mandate from the people. Just sayin. Buyout of corrupt leaders is bad but in the first place why are there corrupt leaders in power? Obviously the people had put them there. Did we expect these corrupt leaders to save us from the corruption that they made/were part of? This is the problem with Msia!

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