CONTRACT (AGREEMENT) BETWEEN PERMODALAN NASIONAL BERHAD AND HEITECH PADU BERHAD FOR OUTSOURCING OF IT SERVICES
1. Introduction
HeiTech Padu Berhad (“HeiTech” or “the Company”) is pleased to announce that it had entered into an Agreement with Permodalan Nasional Berhad (PNB) for the Outsourcing of IT Services on the 14th January 2016.
The Outsourcing of IT Services consist of the following works:-
a) Application Services (Application Development, maintenance and support services)
b) Desktop Management Services (covers support and maintenance of end user machines and user machine applications),
c) Data Center Services (Data Center Operation Support, production support, technical support & Data Centre Housekeeping)
d) Disaster Recovery Services
e) Helpdesk Services (helpdesk support, incident receiving, Incident Assignment, Diagnosis & Escalation, Incident Resolution, Incident reporting & reviewing, reporting and Incident Management System facility)
2. The Contract Value
The Contract Value of the project is RM16,960,000.00 (Ringgit Malaysia Sixteen Million Nine Hundred and Sixty Thousand Only) (Inclusive of 6% GST)
3. Duration of the Project
The Contract is for a period of 1 year commencing from 1st January 2016 to 31st December 2016.
4. The effect on net assets of the Group
The Proposed Transaction will not have any material effect on HeiTech Group’s Net Asset for the financial year ending 31 December 2016 and is expected to contribute positively to the future earnings of HeiTech Group.
5. The risks in relation to the contract
The risks are normal risks encountered by other Companies undertaking a similar endeavor and the Group has taken the necessary steps to protect itself and to mitigate the risks when and as it occurs.
6. Directors' and Substantial Shareholders' Interest
At the last Annual General Meeting (“AGM”) held on the 17thJune, 2015, the Company had obtained shareholders mandate to enter into recurrent related party transactions with the aforementioned mandated party.
7. Statement of the Directors
The Board of Directors is of the opinion that the execution of the contract is in the ordinary course of business and is in the best interest of the Company.
8. Financial effects
The Agreement will have a positive effect on the earnings per share. Nevertheless, the Contract will have no material effect to the dividened policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial ending 31st December 2016.
This announcement is dated 14th January 2016.