Introduction

Ideal United Bintang International Berhad (Registration No : 201701001111 [1215261-H]) (”IUBIB") wishes to announce that its wholly-owned subsidiary, Ideal Infra International Sdn Bhd (Registration No: 198101005223 [71337-V]), has on 31 May 2021 entered into a Term Sheet (“TS”) with MYISP Dot Com Sdn Bhd (Registration No: 200501024860 [706993-V]) (“MYISP") to appoint MYISP as its non-exclusive provider for its selected project developments undertaken by IUBIB Group and MYISP shall at its own costs and expenses to set-up, install and provide high speed internet broadband services to IUBIB Group’s present and future development (“Collaboration”).

Information on MYISP

MYISP a high speed broadband internet service provider under Network Service Provider (“NSP”) and Network Facility Provider (“NFP”) licensed by the Malaysian Communications and Multimedia Commission (“MCMC”) to provide Network Services and Network Facilities.  

Rationale

To increase the shareholders’ value by going into the broadband business that is in synergy with IUBIB Group’s developments.

Risk Factor

The Company does not expect any material risk arising from the TS.

Financial Effects

The Collaboration is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2021.  IUBIB is confident that the Collaboration will contribute positively to the future earnings of the IUBIB Group and is looking forward to a win-win situation as the broadband internet service will be an add-value feature to the IUBIB Group’s future project developments.

Duration

The TS shall commence on 31 May 2021 for the initial contract period of 5 years.

Approval Required

The TS is not subject to the approval of the Shareholders of IUBIB or any other government authorities.

Directors’ and Major Shareholders’ Interest

None of the Directors and/or Major Shareholders and/or person connected to them, has any interest, direct or indirect, in the Collaboration.

Statement by the Board of Directors

The Board is of the opinion that the Collaboration is in the best interest of the Company.

This announcement is dated 31 May 2021.