1. Introduction
Mesiniaga Berhad is pleased to announce that the Company has accepted a Letter of Award from Telekom Malaysia Berhad for the Supply, Delivery, Installation, Testing, Commissioning, Post Acceptance Maintenance and Support Services of New IP Core and Service Edge.
2. The Contract Value
The total contract value of the project is RM90,014,699 (Ringgit Malaysia : Ninety Million Fourteen Thousand Six Hundred and Ninety Nine).
3. Duration of the Project
The Contract is for a period of five (5) years commencing from 11th June 2014.
4. The effect on net assets of the Group
The proposed transaction will not have any material effect on the Companys Net Assets for the financial year ending 31 December 2014 but is expected to contribute positively to the Companys 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. The Company has however taken the necessary steps to protect itself in mitigating the risks.
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 Letter of Award will have a positive effect on the earnings per share. Nevertheless, the Contract will not likely to effect on the dividend policy, gearing, share capital and the substantial shareholders shareholdings of the Company for the financial year ending 31st December 2014.