KUALA LUMPUR (Nov 1): Boustead Heavy Industries Corp Bhd (BHIC) and Minister of Finance Inc (MOF Inc) have mutually agreed to extend the conditional period for the disposal of a 20.77% stake in Boustead Naval Shipyard Sdn Bhd (BNS) to MOF Inc by another one month to Dec 1.

BHIC said that the parties “require additional time for the fulfilment of the conditions precedent” to finalise the conditional agreement.

In a filing with Bursa Malaysia on Wednesday, BHIC said the disposal agreement for a nominal sum of RM1 had already been extended for 21 working days until Nov 2.

BHIC in a past filing said that the divestment is conditional upon fulfilling the conditions precedent within 30 business days, or a further period of 21 business days or such a longer period as the parties may agree.

The deal was part of the government’s intention to take full control of the RM9.13 billion littoral combat ship project that BNS had failed to deliver on time.

There were four conditions precedent, including the execution of a conditional inter-company trade receivables reorganisation agreement to be entered into between BHIC and BNS.

The agreement was meant for the repayment of RM383.94 million or such other sum owed by BNS to BHIC. Other conditions precedent include necessary written consent from BNS’ lenders and BHIC’s financiers or creditors.

Of the remaining equity interest in BNS, Boustead Holdings holds a direct stake of 68.85%, while the Armed Forces Fund Board (LTAT) owns 10.38%. LTAT took Boustead Holdings private in June this year.

Shares in BHIC ended down one sen or 2.11% at 46.5 sen on Wednesday, with a market capitalisation of RM115.53 million.

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