1. Introduction
Mesiniaga Berhad is pleased to announce that the Company has accepted a Letter of Award from Telekom Malaysia Berhad for ‘The Maintenance and Support Services of IP Core”.
2. The Contract Value
The total contract value of the project is RM132,956,324 (Ringgit Malaysia : One Hundred Thirty Two Million Nine Hundred Fifty Six Thousand Three Hundred and Twenty Four).
3. Duration of the Project
The Contract is for a period of five (5) years commencing from 1st September 2014 until 31st August 2019.
4. The effect on net assets of the Group
The proposed transaction will not have any material effect on the Group’s Net Assets for the financial year ending 31 December 2014 but is expected to contribute positively to the Group’s earnings over the period of Contract.
5. The risks in relation to the contract.
The risks relate mainly to meeting deadlines imposed by the customer and meeting the terms of the service level commitments for which the Company has previously executed a similar project with Telekom Malaysia.
6. Directors' and Substantial Shareholders' Interest
None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of Mesiniaga Berhad have any interest, either direct or indirect in the above Contract.
7. Statement of the Directors
The Board of Directors of the Company is of the opinion that the above Contract is in the ordinary course of business and is in the best interests of the Company.
8. Financial effects
In addition to the information disclosed, we would like to inform that the new project is anticipated to have an overall positive financial impact to the Company during the duration of the contract.