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SAPRES

0.600

-0.05 (-7.7%)

MEMORANDUM OF UNDERSTANDING SAPURA RESOURCES BERHAD ('SRB' OR 'THE COMPANY') - MEMORANDUM OF UNDERSTANDING ('MOU') BETWEEN SRB AND MTU ASIA PTE LTD

SAPURA RESOURCES BERHAD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
SAPURA RESOURCES BERHAD ('SRB' OR 'THE COMPANY') - MEMORANDUM OF UNDERSTANDING ('MOU') BETWEEN SRB AND MTU ASIA PTE LTD

1. Introduction

The Board of Directors of SRB is pleased to announce that the Company has on 26 March 2019 entered into a MOU with MTU Asia Pte Ltd ('MTU').

(SRB and MTU shall collectively be referred to as 'Parties' and individually as a 'Party' where the context so requires).

2. Information on MTU

MTU (Company Registration No. 197400771 H), a company incorporated under the laws of Singapore and having its registered address at 10, Tukang Innovation Drive, Singapore 618302.

MTU is a wholly-owned subsidiary of Rolls-Royce Power Systems AG ('RRPS'). RRPS specialises in the design, development, production, supply and service of diesel and gas engines, propulsion and power generation systems, sub-systems and components as well as complete solutions.

3. Salient terms of MOU

3.1 Purpose of the MOU

The purpose of the MOU is to support discussion on a potential strategic collaboration between the Parties to establish a joint venture for the sales and service of original equipment packaging solutions in marine (both naval and commercial), rail, construction & industrial, mining, agriculture, oil and gas, and power generation market sectors in Malaysia and which will primarily serve the Malaysian market ('Project').

3.2 Definitive Agreement

The Parties agree to collaborate as follows:-

i) To continue and further enhance their discussion and negotiation in good faith in relation to the Project.

ii) To negotiate on, finalise and execute the definitive agreement for the Project ('Definitive Agreement') in good faith, within three (3) months from the date of the MOU.

3.3 Validity

The MOU is valid and shall remain in force for a period of three (3) months from the date of the MOU or until the Parties' execution of the Definitive Agreement, whichever is the earlier.

4. Rationale

The MOU will enable us to continue detailed discussion with a view to form a joint venture company with a reputable partner in a promising business to improve SRB Group of Companies’ ('SRB Group') future profitability.

5. Financial effects

The execution of the MOU is not expected to have any material effect on the earnings, net assets and gearing of SRB Group for the current financial year ending 31 January 2020.

The MOU will not have any effect on the share capital and substantial shareholders' shareholdings of SRB.

6. Directors' and/or Substantial Shareholders' Interest

None of the Directors and/or substantial shareholders of SRB or any persons connected to them have any interest, either direct or indirect, in the MOU.

7. Directors' Statement

The Board of Directors of SRB is of the opinion that the MOU will have a positive impact on the business of SRB and is in the best interest of SRB Group.

This announcement is dated 26 March 2019.






Announcement Info

Company Name SAPURA RESOURCES BERHAD
Stock Name SAPRES
Date Announced 26 Mar 2019
Category General Announcement for PLC
Reference Number GA1-25032019-00083