Ghana: Government Acquires PSC Tema Shipyard

Boustead Heavy Industries Corporation Berhad (BHIC) – released an update on proposed disposal of the entire 60% of the equity interest held by its wholly-owned subsidiary, Boustead Penang Shipyard Sdn Bhd in PSC Tema Shipyard Limited.

Further to the announcement made on 6 September 2011, the Company announced that, on 27 June 2012, in Accra, Ghana, Boustead Penang Shipyard Sdn Bhd (“BPS”), entered into a sale and purchase agreement with the Government of the Republic of Ghana (GoG) for the purchase of the entire 60% equity interest in PSC Tema Shipyard Limited (PSCT) by the GoG. The overall transaction value is USD 6.36 million, of which USD 5.12 million (subject to tax) is in respect of the equity investment, and USD 1.24 million is in respect of the agreed settlement of certain accounts between PSCT and BPS.

The transaction is not expected to have any material effect on the earnings of the Company for the financial year ending 31 December 2012.

The completion date for the transaction is 29 June 2012, the announcement is dated 28 June 2012.

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Source: bhic, July 10, 2012