The Board of Directors of PESTECH wishes to announce that PESTECH Sdn. Bhd. ("PSB"), a wholly-owned subsidiary of the Company had on 27 June 2013 entered into a MOU with ABB Malaysia Sdn. Bhd. ("ABB") to signify that both parties agreed to enter into technical cooperation agreement through which ABB provides technical support, technical drawings and Original Equipment Manufacturer ("OEM") products to PSB aimed at locally producing 11kV and 24kV Air Insulated Switchgear as PSB's own product and under PSB's own brand name.
Information on ABB
ABB is a company incorporated in Malaysia under the Companies Act 1965 with place of business at Lot 608, Jalan SS13/1K, 47500 Subang Jaya, Selangor Darul Ehsan. ABB is a leader in the power and automation technologies to enable utility and industry customers to improve their performance while lowering their environmental impact.
Salient Terms of the MOU
The technical cooperation between PSB and ABB ("the Parties") is structured in two (2) phases:-
a) Phase 1 - concluded Frame Agreement for supply of 11kV Air Insulated Switchgear of type UNIGEAR ZS1 and 33kV Gas Insulated Switchgear
b) Phase 2 - Technical Cooperation Agreement aimed at locally producing 11kV and 24kV Air Insulated Switchgear as PSB's own product and under PSB's own brand name
The agreements for both the above phases are being prepared and will be signed by 31 October 2013.
The MOU shall remain effective from the date of signing of the MOU and shall expire on 31 December 2013 unless terminated or superseded by the signed agreements for both phases of the technical cooperation of the Parties.
The MOU will have no material effect on earnings, revenue and net assets per share of the Group for the financial year ending 31 December 2013 but is expected to contribute positively to the future earnings of the Company.
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 27 June 2013.