Thursday, December 22, 2011

Boustead edges up in early trade after denying BHIC privatisation report

Larger Smaller Reset KUALA LUMPUR (Dec 22): BOUSTEAD HOLDINGS BHD [] shares advanced in early trade on Thursday after the conglomerate denied a news report that it was considering taking BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) private.

At 9.25am, Boustead was up 15 sen to RM5.81, while BHIC was unchanged at RM3.39.

'We would like to clarify that Boustead is currently not considering any proposal to privatise Boustead Heavy Industries Corporation Bhd,' the conglomerate told Bursa Malaysia Securities Bhd in a one-paragraph statement on Wednesday.

Citing unnamed sources, it was reported by a local newspaper that Boustead was planning to take BHIC private 'driven largely by the latter's seemingly cheap valuations especially in light of the recent RM9 billion vessel contract it has been awarded'.

BHIC's associate Boustead Naval Shipyard Sdn Bhd was last week awarded a contract with a ceiling of RM9 billion by the Defence Ministry to design, build and deliver six second-generation patrol vessels or Littoral combat ships.

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