BHIC pares down gains after Boustead denies privatisation plan

Larger Smaller Reset KUALA LUMPUR (Dec 21): Shares of BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) pared down their gains on Wednesday after BOUSTEAD HOLDINGS BHD [] denied a news report that it was considering taking the former private.

At 3pm, BHIC was up seven sen to RM3.25 with 1.29 million shares traded, down from its earlier intra-morning high of RM3.41.

Boustead had clarified to Bursa Malaysia Securities Bhd that it was currently not considering any proposal to privatise BHCI.

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.

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.

BHIC rises in early trade

KUALA LUMPUR: Boustead Heavy Industries Bhd (BIC) shares advanced in early trade on Thursday, April 7 after the company said it targets to double its order book this year, mainly driven by the finalising of its littoral combatant ship (LCS) contract with the Defence Ministry.

At 9.08am, BHIC was up 15 sen to RM4.35 with 220,300 shares done.

Managing director Tan Sri Ahmad Ramli Mohd Nor said BHIC's order book currently is RM1.2 billion.

Last October, BHIC received a letter of intent to build six second-generation patrol vessels with combatant capabilities.

Meridien Shore serves writ of summons on Boustead Naval Shipyard, claims RM49.5m for losses

KUALA LUMPUR: Boustead Heavy Industries Bhd (BHIC) associate Boustead Naval Shipyard Sdn Bhd (BNS) has been served with a writ of summons by Meridien Shore Sdn Bhd which is claiming RM49.5 million in losses.

BHIC said on Monday, March 28 Meridien (in liquidation) was claiming RM49.57 million as specific damages, interest at 8% per annum, general damages, cost and other relief over the alleged losses suffered after Bank Kerjasama Rakyat Malaysia Bhd foreclosed on several parcels of its land in Johor.

'Meridien is alleging that it had created third party charges over the land as a form of security for a financing facility granted by Bank Rakyat to BNS for RM15 million.

'It was also alleged by Meridien that Bank Rakyat foreclosed and auctioned off the land because BNS had defaulted on its repayment obligations to Bank Rakyat,' it said.

The High Court had fixed the matter for case management on March 28.

BHIC said BNS had appointed solicitors to handle this case and its directors viewed BNS has a good defence to this claim by Meridien.