Boustead Heavy Industries Corporation has proposed to dispose of its wholly owned subsidiary Contraves Advanced Devices
representing 51% equity interest to Rheinmetall AG for a disposal consideration of RM54 million to be satisfied in the manner set out in the SPA
The group said the proposed disposal provides an opportunity to fully exit and monetise its investment in CAD, whilst also providing a surplus cash flow of RM54 million arising from the sale of its equity in CAD. BHIC said the proceeds will enable the group to maintain adequate reserves which can be readily deployed to capitalise on future viable investments as part of business expansion, in a timely manner as and when such opportunities arise.
The disposal is being undertaken as part of a group-wide transformation initiative for its entities to operate and grow more efficiently.
