KUALA LUMPUR, Dec 24 (Bernama) -- Boustead Heavy Industries Corporation Bhd (BHIC) has disposed of its equity stake in Contraves Advanced Devices Sdn Bhd (CAD) to German automotive and arms manufacturer, Rheinmetall AG.
In a statement, BHIC said its wholly owned subsidiary, BHIC Defence Technologies Sdn Bhd, through which the shares were held, reached an agreement with Rheinmetall for the disposal of the shares following negotiations initiated in December 2023.
It added that its shareholders voted to approve the disposal of its 2.55 million shares, valued at RM54 million, during an extraordinary general meeting held today.
“The disposal represented a 51 per cent equity stake in CAD and was deemed as a strategic move that will facilitate the group’s growth moving forward,” said BHIC.
CAD is principally involved in the manufacturing of industrial printed circuit board assemblies and box-build assemblies and in the production of modules, electronic subassemblies, antennae and electronic time relays for the automotive industry.
Rheinmetall owns a 49 per cent stake in the company.
BHIC chief executive officer Feroz Razi Ramli said the disposal will further strengthen the group’s financials following the RM417 million debt settlement exercise in early 2024, and facilitate the strategic realignment of its business.
-- BERNAMA
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