KUALA LUMPUR: A deal between Boustead Heavy Industries Corp Bhd (BHIC) and a Minister of Finance (MoF) Inc company to take over BHIC's 20.77 per cent interest in littoral combat ship project company, Boustead Naval Shipyard Sdn Bhd (BNS) for RM1, has been extended for a fourth time.
In a filing with Bursa Malaysia Securities Bhd, BHIC said the condition period for the share sale agreement between its subsidiary, Perstim Industries Sdn Bhd, and MoF Inc company, Ocean Sunshine Bhd (OSB), has been extended until Jan 31, 2024, as the parties involved need more time to fulfill the conditions precedent for the deal.
The conditions precedent include the execution of a conditional intercompany trade receivables reorganisation agreement between BHIC and BNS for the repayment of a sum of RM383.94 million and/or such other sum due and owing by BNS to BHIC subject to a due diligence review and to be mutually agreed; the completion of the due diligence review and all remedial actions have been undertaken and completed to the satisfaction of the OSB;
(c) Perstim delivering to OSB a copy of the approval letter from each of BNS' lenders consenting to the sale and transfer of the sale shares to OSB; and
(d) Perstim having obtained, if required, the written consent from the financiers/ creditors of BHIC, its holding company for the disposal of the sale shares by the Perstim.
On Aug 18, 2023, BHIC's indirect subsidiary Perstim entered into a SSA with OSB for it to buy a 20.77 per cent interest in BNS for RM1.
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.