The Board of Directors of PESTECH wishes to announce that PESTECH Sdn. Bhd. ("PSB"), a wholly-owned subsidiary of the Company, had on 13 April 2015 entered into an MOU with Tanjung Piai Maritime Industries Sdn. Bhd. ("TPMI") for exclusive exploratory efforts in the establishment of power supply infrastructure to the Tanjung Piai Integrated Petroleum and Maritime Industrial Park (TPIPMIP), Mukim Serkat, Daerah Pontian, Johor Darul Takzim.
Information on TPMI
TPMI (Company No.: 943274-D) is a company incorporated under the laws of Malaysia with place of business at No. 38, Jalan Pengacara U1/48, Seksyen U1, Temasya Industrial Park, Glenmarie, 40150 Shah Alam, Selangor Darul Ehsan. TPMI is a wholly-owned subsidiary of Benalec Sdn Bhd, which in turn is a wholly-owned subsidiary of Benalec Holdings Berhad, a Bursa Malaysia Securities Berhad Main Market listed company.
Salient Terms of the MOU
TPMI desires to develop the TPIPMIP, a large scale integrated petroleum, petrochemical and maritime industries and other oil & gas-related services industrial park covering 3,485 acres in the state of Johor Darul Takzim.
TPMI intends to work together with PSB on an exclusive basis to explore various avenues in the establishment of power supply infrastructure to the new development at TPIPMIP.
TPMI and PSB (collectively known as The Parties) shall initiate discussions and form definitive contract within a period of six (6) months (MOU Period) on an exclusive basis from the date of the MOU or such further period(s) as may be mutually agreed upon by the Parties for the establishment of power supply infrastructure in TPIPMIP (The Proposal).
TPMI agrees to engage PSB and its nominated consultant (if required) exclusively to apply, design, for the electrical infrastructures to TPIPMIP and subsequently to carry out design, manufacturing, testing, delivery of equipment and installation, construction and commissioning of the Proposal on a full turnkey basis via a project contract based on terms and conditions to be determined later (Project Contract).
The MOU will have no material effect on earnings, revenue and net assets per share of the Group for the financial period ending 30 June 2015 but is expected to contribute positively to the future earnings of the Group should the Project Contract materialises eventually.
The Company does not foresee any exceptional risk other than the normal operational risk associated with the MOU. The Company will take the necessary steps to mitigate the risks as and when it occurs.
None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the MOU.
The Board of Directors of PESTECH is of the opinion that the MOU is in the best interest of the Company.
This announcement is dated 14 April 2015.