KUALA LUMPUR: Boustead Heavy Industries Corp Bhd's (BHIC) planned disposal of its 20.77 per cent stake in the troubled Boustead Naval Shipyard Sdn Bhd to the Ministry of Finance (MoF) for RM1 has been extended for another month to April 30, its sixth extension.
The proposed disposal is to facilitate the decision of the government of Malaysia, through the MoF's letter to BHIC dated May 25, 2023, to acquire 100 per cent of shares in BNS in order to ensure the completion of the littoral combat ship project.
In a filing to Bursa Malaysia, BHIC said the extension allows both parties more time to fulfill the necessary conditions precedent for the transaction.
"For avoidance of doubt, all other terms and conditions of the share sale agreement (SSA) remain unchanged," it said.
In total, the agreement between BHIC and the MoF has now been extended by almost seven months from the original deadline set for the fulfillment of conditions precedent on Oct 3, 2023.
On Aug 18, 2023, BHIC's indirect subsidiary Perstim Industries Sdn Bhd entered into a SSA with MoF Inc company, Ocean Sunshine Bhd (OSB), for it to buy a 20.77 per cent interest in BNS for RM1.