News

1. INTRODUCTION

Prestariang Technology Sdn. Bhd. (“PTSB”), a wholly owned subsidiary of Prestariang had on 27 March 2014 entered into a Memorandum of Understanding (“MOU”) with YPJ Holdings Sdn. Bhd. (“YPJH”), an investment arm of the Johor Education Foundation, to set up Petroleum Academy Malaysia (“the Academy”) in the state of Johor.  

2. DETAILS OF THE MOU 

The MOU entails the formation of a joint-venture company (“JVC”) by both parties for the purpose of undertaking the setting-up, running and management of the Academy in the state of Johor to provide the skills and up-skilling trainings in the oil and gas industry to youths between the age of 17 - 25 and those who are interested in attaining or expanding their knowledge and skills in the Oil and Gas Industry  to meet the expected demand of skilled workers throughout the nation and in particular in relation to the Refinery and Petrochemicals Integrated Development (“RAPID”) in Pengerang Johor.  

PTSB’s objectives, amongst others, is to provide vocational education and technical training, to address the human capital needs of the National Key Economic Area (“NKEA”) projection for the nation’s oil and gas industry.  

3. SALIENT TERMS OF THE MOU 

3.1. SHAREHOLDINGS IN THE JVC 

The Parties further agree that PTSB shall subscribe seventy per cent (70%) of the equity interest whilst YPJH shall subscribe thirty per cent (30%) of the issued and paid up capital of the JVC. 

3.2. FINANCIAL OBLIGATION

The MOU will not give rise to any financial obligation by the Company to YPJH and vice versa. Each party will bear its own cost and expenses in relation to this MOU. 

3.3. OBLIGATION OF PARTIES 

YPJH undertakes that it shall identify suitable existing buildings and infrastructure which shall be rented or leased to the JVC whereas PTSB undertakes that it shall structure and provide the relevant and appropriate modules for the vocational and technical training for the oil and gas sector, teaching staffs and trainers for the abovementioned disciplines, obtain international certification for the course offered and collaborate with the market and industry to ensure high employability of the trainees of the Academy.  

3.4. ENTRY INTO EFFECT AND DURATION 

The MOU shall be effective from 27 March 2014 and shall be deemed terminated upon:-  

a) either Party giving to the other Party a notice in writing of its intention to terminate this MOU; or  

b) the expiration of a period of six (6) months from the date hereof or such other extended date as the Parties may agree to in writing. 

4. EFFECTS ON FINANCIAL, SHARE CAPITAL AND SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDINGS

The MOU is part of the future plan of Prestariang to improve and benchmark its standard which would bring the effect of contributing positively to the future earnings, net assets per share and gearing of Prestariang Group.

Such collaboration will not have any effect on the share capital and substantial shareholders’ shareholding of Prestariang.

5. DIRECTORS’ AND/OR SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors and/or substantial shareholders or any person connected to the Directors and/or substantial shareholders of Prestariang has any interest, either direct or indirect in the MOU.

6. DIRECTORS’ STATEMENT

The Board of Directors of Prestariang is of the opinion that the MOU is in the ordinary course of business and is of the best interest of Prestariang Group.

The announcement is dated 27 March 2014.