1. Introduction
Mesiniaga Berhad is pleased to announce that the Company has today received a Work Instruction from Xiddig Cellular Communications Sdn. Bhd. The Work Instruction is to commence the delivery of the Lab Equipment and site readiness preparation for EM-IIG Project service testing/verification (the “Contract”).
2. The Contract Value
The total contract value of the project is RM27,402,717 (Ringgit Malaysia: Twenty Seven Million Four Hundred and Two Thousand Seven Hundred and Seventeen).
3. Duration of the Project
The Contract is to be completed within four months.
4. The effect on Net Assets of the Group
The proposed transaction will not have any material effect on the Company’s Net Assets for the financial year ending 31 December 2018. It is expected to contribute positively to the Company’s earnings over the period of the 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 mitigate 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 directly or indirectly in the said Contract.
7. Statement of the Directors
The Board of Directors of the Company is of the opinion that the said Contract is in the ordinary course of business and is in the best interests of the Company.
8. Financial effects
In addition to the Company’s information disclosed, the Management would like to inform that the Contract will have a positive effect on the Earnings Per Share. The Contract however will not likely to have an effect on the dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial year ending 31st December 2018.
This announcement is dated on 28th December 2018.