SHAH ALAM: The nationalisation of Boustead Naval Shipyard (BNS) has been delayed yet again. Last month, Boustead Heavy Industries Bhd (BHIC) announced that the deal with the Ministry of Finance Inc. will be delayed.
BHIC on November 1 said that the parties “require additional time for the fulfilment of the conditions precedent” to finalise the conditional agreement. It said the deal will be delayed up to December 1. It was supposed to be completed today (November 3).
From the previous story:
BHIC had announced previously that the government was taking full control of the BNS and subsequently, the LCS project, for a token figure of RM1. The government however needs to pay BHIC some RM1.2 billion, most of which is liabilities incurred by BNS for the financial period of 2022 while the rest is the sum incurred by BNS to the company.
The exact amount of BNS liabilities is RM848.45 million and RM383.94 million is the sum owed by BNS to BHIC.
In its recent report, the Public Accounts Committee stated that BNS also had loans facility which amounted to some RM629 million. This mean that the full nationalisation of BNS will amount to some RM1.86 billion. According to my calculations, with the BNS outstanding loans, the cost of the LCS programme is actually RM13.2 billion. I did not take account the outstanding BNS loans in the figure, stated here which was RM12.44 billion.
The announcement by BHIC:
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
The terms used herein shall have the same meaning as those defined in the announcement dated 21
We refer to the announcements dated 29 May 2023, 21 August 2023, and 4 October 2023 in relation to the Proposed Disposal.
Pursuant to the SSA and the subsequent agreement between the Parties, the Conditional Period for the fulfilment of the Conditions Precedent for the Proposed Disposal was extended up to 1 November 2023
(“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 Extended Conditional
Period of the SSA for a further period up to 1 December 2023 (“Second Extended Conditional Period”).
For avoidance of doubt, all other terms and conditions of the SSA remain unchanged.
This announcement is dated 1 November 2023
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