News

INTRODUCTION

The Board of Directors of Prestariang Berhad (“Prestariang” or “the Company”) is pleased to announce that Prestariang had on 3 November 2014 entered into a Memorandum of Understanding (“MOU”) with MIE Corporate Holdings Sdn Bhd (“MIEC”).

DETAILS OF THE MOU

Background of MIEC

MIEC was incorporated in Malaysia under the Companies Act, 1965 and is having its address at Puchong, Selangor.

Its present authorised share capital is RM5,000,000 comprising of 5,000,000 ordinary shares of RM1.00 each. The present issued and paid up capital of MIEC is RM1,000,000 comprising 1,000,000 ordinary shares of RM1.00 each.

MIEC shares the common major shareholders with, and has management of MIE Industrial Sdn Bhd (“MIEI”). MIEI is a local consortium partner together with CTCI-Chiyoda JV from Taiwan and Synerlitz (Malaysia) Sdn Bhd, and is a successful tenderer of a particular Package under the Refinery and Petrochemicals Integrated Development (“RAPID”) project. MIEI is involved in the Oil & Gas Downstream EPCC business as well as in the Oleochemical and Chemical industries has, among others, the ability and capacity to (i) absorb trained (skilled and up-skilled) Malaysian manpower and (ii) source for foreign skilled manpower, for its Oil & Gas and related industries’ projects.

SALIENT TERMS OF THE MOU

Objective

To undertake a preliminary study to review the feasibility of proceeding with the setting up of a joint-venture company (“the JVC”) for the supply of manpower (both local and foreign) to the Oil & Gas Industry, including the Rapid Project.

Scope of Study

Without preventing the inclusion of other discussion topics, the Parties have agreed to scope of the study as follows:

Assessment of demand for skilled & semi-skilled workers, cost of hiring in the market, current supply to the market, database required, and requirements for marketing activities.

Assessment of supply from local and foreign countries including the regulatory requirements from local and foreign countries including work permit, health screening, CIDB certificates, etc., and other requirements.

Assessment of JV organization and manpower requirements required in handling and managing the foreign workers including accommodation, logistics, training, etc.

Assessment of various business model for managing manpower such as via once-off direct placement arrangement, fee-based payroll structure, etc.

Determine the Internal Rate of Return and other relevant economic indicators for the Parties’ assessment.

Joint Venture

Upon the successful execution of this MOU, both Prestariang and MIE intend to co-operate with each other and combine their expertise, efforts and resources through the formation of a JVC with a view to jointly undertake the setting-up, operation and management of a business entity to source, acquire, train and supply skilled and semi-skilled workers (both Malaysian and foreign) particular in relation to the RAPID project in Pengerang, Johor, and to related industries in general.

Accordingly, Prestariang shall hold an equity of 51 percent (51%) whilst MIEC shall take up 49 percent (49%) of the issued and paid-up capital of the JVC to be set up specifically for the aforementioned business venture.

FINANCIAL EFFECTS

The MOU is part of the future plan for Prestariang to extend its values through talent acquisition and management, aligned with its vision to develop local talent for the global market. Prestariang expects this MOU to contribute positively towards the growth of the company.

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

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.

DIRECTORS’ STATEMENT

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