Announcement Details/Table Section :
1. INTRODUCTION
Reference is made to the Prospectus of Prestariang dated 28 June 2011 and the Board of Directors of Prestariang is pleased to announce that its wholly-owned subsidiary, Prestariang Systems Sdn. Bhd. (“PSSB”) had on 23 August 2011 entered into an agreement with the Government, represented by the MOHE for the supply of licensed software and related value-add services consisting of Microsoft Corporation Software & Services (“Microsoft Software & Services”) to all public institutes of higher learning including universities, polytechnics and community colleges in Malaysia ( “IPTA”)(“Supply of Microsoft Software & Services ”).
2. INFORMATION ON SUPPLY OF MICROSOFT SOFTWARE & SERVICES
The Government is desirous to:-
(i) Raise the standards of IPTA’s teaching, research and learning to international levels and global standards;
(ii) Ensure the skills relevancy of graduates for the 21st century;
(iii) Reduce the quality discrepancies and divide between high achievers and underperforming students;
(iv) Reduce costs associated with IPTA procurement; and
(v) Make IPTA the institutes of higher learning of choice.
Towards achieving the Government’s mission, PSSB will supply Microsoft software and related value-add services to all IPTA.
The total contract price is RM40,000,000/- over the course of four (4) years from 2 July 2011 to 1 July 2015 at RM10,000,000/- only per annum as consideration towards the supply of Microsoft Software & Services by PSSB.
3. FINANCIAL EFFECTS
The Supply of Microsoft Software & Services is expected to contribute positively to the future earnings, net assets per share and gearing of Prestariang Group.
The Supply of Microsoft Software & Services will not have any effect on the share capital and substantial shareholders’ shareholding of Prestariang.
4. RISK FACTORS
Competition among operators that are involved in the general distribution of proprietary software licenses is intense. However, the competitive intensity for the management and distribution of proprietary software licenses to government bodies and large organisations is low due to various consideration factors including following: -
(i) The number of operators that are able to manage and distribute to large private and public organisations are few;
(ii) There are significant value-adding in the management of proprietary software licenses which, among others, including keeping current the inventory of all licenses under management, implementing a programme for updating software licenses, and having a system for adding and deleting software licenses; and
(iii) Operators that are able to distribute and manage proprietary software licenses to large organisations are authorised by product owners. Product owners normally authorise only a small number of organisations to distribute and manage their proprietary software licenses to large organisations.
The Supply of Microsoft Software & Services under the agreement is highly dependent on PSSB’s major supplier, Microsoft Corporation. PSSB has been dealing with Microsoft Corporation for approximately seven (7) years. This indicates a continuing and stable business relationship with Microsoft Corporation.
5. DIRECTORS' AND/OR MAJOR SHAREHOLDERS' INTEREST
None of the Directors and/or major shareholders or any person connected to the Directors and/or major shareholders of Prestariang has any interest, either direct or indirect in the Supply of Microsoft Software & Services.
6. DIRECTORS' STATEMENT
The Board of Directors of Prestariang is of the opinion that the Supply of Microsoft Software & Services is in the ordinary course of business and is in the best interests of the Company.
The Board of Directors of Prestariang is pleased to attach herewith a Press Release entitled Prestariang Continues Growth Momentum in the First Half of the Year and Secured a New Multi-year Contract.
This announcement is dated 23 August 2011. |
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