MEMORANDUM OF UNDERSTANDING (“MOU”) BETWEEN HEITECH PADU BERHAD AND REGAL ORION SDN. BHD. (“RO”)

1.            Introduction

HeiTech Padu Berhad (“HeiTech” or “the Company”)   wishes to announce that the Company has on 26 November 2020 entered into a non-legally binding Memorandum of Understanding ("MOU") with Regal Orion Sdn. Bhd. ("RO”) (collectively referred to as the “Parties” and each as a “Party”) to explore all possible business collaboration to unlock the potential business synergy via its respective competitive advantage and seek to enhance the data centre related business activities in Malaysia

2.            Information on RO

RO is a company incorporated in Malaysia and having its registered office at Ground Floor, 8, Lorong Universiti B, Section 16, Petaling Jaya, 46200 Selangor, Malaysia. and business address at B-8-8, ICON City, Jalan SS8/39, 47300 Petaling Jaya, Selangor.

The principal activities of RO are the involvement in engineering, construction and project management specifically in the data centre development sector and activities ancillary thereto. RO is currently undertaking a Tier IV Data Centre at Techpark @ Bandar Enstek, Labu, Seremban, Negeri Sembilan.

3.            Rationale of the MOU

HeiTech is well-established in the data centre business with a Tier-IV ready data centre situated at HeiTech Village 2, Bukit Jelutong, Shah Alam, Selangor Darul Ehsan. The MOU will enable the Parties to explore future data centre business potential in large customer market segment in Malaysia.

4.            Salient Terms of the MOU

With this MOU, the Parties shall explore all possible business collaboration to unlock the potential business synergy via its respective competitive advantage and seek to enhance the data centre related business activities in Malaysia. These include sharing information in related data centre related business technical competencies and exploring future business potential in large customer market segment in Malaysia.

5.            Duration and Termination

Within ninety (90) days from the date of the MOU the Parties shall enter into a Definitive Agreement to define their relationships in more detail relating to the performance of any collaboration (hereinafter referred to as "the Definitive Agreement").

Upon the execution of the Definitive Agreement or lapse of Ninety (90) days (whichever earlier), the MOU shall automatically terminate and be of no effect, unless the MOU is mutually extended.

6.            Financial Effects of the MOU

The MOU is not expected to have any material effects on the net assets per share, earnings per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2020.  

7.            Approvals Required

The MOU is not subject to the approval of the shareholders of the Company or any relevant authorities.

8.            Directors’ and Major Shareholders’ Interest

None of the directors, major shareholders of the Company and persons connected to them have any interest direct and/or indirect in the MOU.

9.            Directors’ Statement 

The Board, having considered all aspects of the MOU, is of the opinion that the MOU is in the best interest of the Company.

10.          Documents Available for Inspection

The MOU will be made available for inspection at the registered office of HeiTech located at Level 15 HeiTech Village, Persiaran Kewajipan, USJ 1 UEP Subang Jaya, 47600 Subang Jaya, Selangor Darul Ehsan for a period of three (3) months from the date of this announcement. 

This announcement is date 26 November 2020.