Malaysian-based Boustead Atlas Hall has signed a RM26.6m (about USD 9.6 million) contract with Boustead Naval Shipyard, under which Boustead Atlas Hall will construct a hangar and consolidate two vessels, according to the The Star Online.
Both companies are subsidiaries of the Boustead Holdings Bhd, which owns 68.85% of Bousted Naval Shipyard.
These contracts were deemed related party transaction under the Listing Requirements of Bursa Malaysia Securities Bhd and the awarded works are in the best interest of the Boustead Holdings, the parent company said.
Boustead Naval Shipyard covers an area of 46 hectares and was originally known as the Royal Malaysia Navy Dockyard. It became fully operational in 1984.
The shipyard is capable of building patrol vessels, fast troop carriers, anchor handling tub, OSVs, luxury yacht hotel and vehicular ferries.
Naval Today Staff, January 30, 2014; Image: Boustead Naval Shipyard