Wednesday, December 21, 2011

No plans to privatise BHIC, says Boustead

Larger Smaller Reset KUALA LUMPUR (Dec 21): BOUSTEAD HOLDINGS BHD [] has denied a news report that it was considering taking BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd private.

'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.

BHIC shares jumped 13 sen this morning to RM3.31 while Boustead fell two sen to RM5.52.

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