Shin Yang's Unit Receives LOI From Home Affairs Ministry For Completion Offshore Patrol Vessels

KUALA LUMPUR, May 27 (Bernama) -- Shin Yang Group Bhd’s (Shin Yang) wholly-owned subsidiary, Shin Yang Shipyard Sdn Bhd, has received a Letter of Intent (LOI) from the Ministry of Home Affairs to appoint as a contractor for works on offshore patrol vessels (OPVs).

In a filing with Bursa Malaysia today, Shin Yang said the LOI expresses the intention of the Ministry of Home Affairs to appoint Shin Yang Shipyard as the contractor for the completion of the remaining works on OPV 2 and OPV 3 for the Malaysian Maritime Enforcement Agency (MMEA).

“The issuance of the LOI is subject to further discussions and negotiations between the Ministry of Home Affairs and Shin Yang Shipyard regarding specific terms of the proposed shipbuilding contract,” it said.

Shin Yang said the LOI does not constitute a legally binding commitment by the Ministry of Home Affairs, and there is no certainty that a definitive contract will be awarded to Shin Yang Shipyard.

“The potential shipbuilding contract, if awarded, is expected to contribute positively to the group’s earnings and net assets for the duration of the project.

“However, the exact financial impact can only be determined upon finalisation and execution of the definitive contract,” it added.

-- BERNAMA