News

1.         INTRODUCTION

The Board of Directors of Prestariang Berhad (“Prestariang” or “the Company”) is pleased to announce that Prestariang had on 12 January 2017 entered into a Memorandum of Understanding (“MOU”) with:-

1. Alibaba Cloud (Alibaba.com Singapore E-Commerce Private Limited), which together with its affiliated entities, is a global cloud service and web-hosting provider and offers highly scalable platforms for cloud computing and data management; and
2. Conversant (Conversant Solutions Pte Ltd), a leading provider of digital media enablement and content delivery network services and solution company incorporated in Singapore,

to form a strategic joint collaboration to create an Integrated Education Platform (IEP) known as EduCloud (“EduCloud”) to drive innovation ecosystem for the education sector including education-related activities and services in Malaysia (“Proposal”).

(Prestariang, Alibaba Cloud and Conversant shall collectively be referred to as “the Parties” and individually referred to as “Party”).

2.            DETAILS OF THE MOU

2.1       Background

The Parties agree to co-operate to create EduCloud as a single platform to drive innovative ecosystem to deliver all activities linked to education and education-related activities and services, including but not limited to campus management, teaching and learning, ICT security, entertainment, digital payment and other activities and/or services undertaken by educational institutions and other online applications.

2.2       Objective

The objective of the MOU is to set out the key terms of the strategic joint collaboration in relation to the Proposal as well as the agreed parameters for purposes of co-operation between the Parties to further their common interest, as follows:

1. to leverage on their respective key strengths based on each Party’s diverse and complementary expertise, competencies and background in order to deliver a comprehensive and robust education platform in Malaysia; and
2. to set out the contribution of each Party to the strategic joint collaboration in relation to the Proposal based on their respective expertise and capabilities.

2.3       Joint Collaboration

In this connection, the Parties agree to co-operate and work together:

(a)        to set out the possible framework, working relationship, directions, work plan and/or future commitments in relation to the strategic joint collaboration in relation to the Proposal;

(b)        to assess the feasibility of the Proposal and to explore future potential opportunities in new markets in the Asia Pacific region; and

(c)        to explore the best structure to promote co-operation between the Parties in matters affecting the areas of potential participation and opportunities for the mutual benefit of the Parties in relation to the Proposal and the strategic joint collaboration.

2.4       Definitive Agreement

The Parties agree to negotiate the terms and conditions of the definitive agreement(s) in relation to the strategic joint collaboration between the Parties in respect of the Proposal (“Definitive Agreement”) and until the Definitive Agreement is duly executed by the Parties, the MOU shall be non-binding, save for specific provisions stipulated therein.

In the event that the Parties are unable to agree on the terms and conditions and execute the Definitive Agreement by 30 June 2017 (“MOU Deadline”) or such extended date as may be mutually agreed in writing between the Parties, any Party shall be entitled to terminate the MOU immediately by giving notice in writing to such effect to the other Parties.

Any Party may terminate the MOU by giving one (1) month notice in writing within the MOU Deadline to the other Parties. 

2.5       Value

The MOU does not specify any value.

3.         FINANCIAL EFFECTS

The MOU signifies Prestariang’s innovative effort in exploring new business opportunities for long term and sustainable growth aligned with its existing core businesses and strengths.

The MOU is not expected to have any major financial impact for the financial year ending 31 December 2017.

The MOU will not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholdings of Prestariang.

4.         BOARD OF DIRECTORS’ AND/OR SUBSTANTIAL SHAREHOLDERS’ INTERESTS

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

5.         DIRECTORS’ STATEMENT

The Board of Directors of Prestariang is of the opinion that the MOU is in the best interest of Prestariang Group.

This announcement is dated 12 January 2017.