SHAH ALAM: The nationalisation of Boustead Naval Shipyard – the builder of the LCS – has been delayed for 30 more days or longer as the parties involved need more time to complete the deal.
Boustead Heavy Industries Bhd (BHIC) announced the extension of the deal a day after the process should have been completed (October 3) to Bursa Malaysia on October 4. It said that an agreement for an extension by both parties came after the expiry of the conditional period on Tuesday.
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 millionand RM383.94 million is the sum owed by BNS to BHIC.
According to BHIC’s past disclosures, the divestment is conditional upon fulfilling conditions precedent within thirty business days, or a further period of 21 business days or such longer period as the parties may agree.
The BHIC announcement:
We refer to the announcements dated 29 May 2023 and 21 August 2023 in relation to the Proposed Disposal.
Pursuant to the SSA, the Conditions Precedent for the Proposed Disposal shall be fulfilled within 30 Business days from the date of the SSA (“Conditional Period”) or a further period of 21 Business days (or
such longer period as the parties may agree) from the expiry of the Conditional Period (“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 Conditional Period of the SSA for a further period of 21 Business days from the date of expiry of the Conditional Period, 3 October 2023.
For avoidance of doubt, all other terms and conditions of the SSA remain unchanged.
This announcement is dated 4 October 2023
The announcement came a day before the Public Accounts Committee was scheduled to visit BNS in Lumut, Perak. It also did not announce whether the work on the LCS project has restarted.
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