News

1. INTRODUCTION

We refer to our announcements on 20 November 2015, 24 November 2015, 26 November 2015, 18 November 2016 and 13 July 2017 in relation to the implementation of an integrated and comprehensive core immigration system known as ‘Sistem Kawalan Imigresen Nasional’ (“SKIN”).

PRESBHD wishes to inform that PSKIN, a wholly-owned subsidiary of Prestariang Services Sdn. Bhd. (“PServices”), which in turn is a subsidiary of PRESBHD, has on 18 July 2017 entered into a concession agreement (“CA”) with the Government of Malaysia as represented by the Ministry of Home Affairs (“Government”) in relation to the implementation of SKIN. As mentioned in our announcement on 18 November 2016, SKIN will be implemented by way of a public private partnership through Build, Operate, Maintain and Transfer (BOMT) method.

2. DETAILS OF THE CA

2.1 Pursuant to the CA, PSKIN is granted the right and authority by the Government to:-

(i) undertake the planning, design, financing, development, customisation, supply, delivery, installation, configuration, integration, interfacing, testing and commissioning of SKIN; and

(ii) carry out maintenance services,

(“Concession”).

In this regard, PSKIN shall deliver the total solution for the integrated and comprehensive core immigration system to be designed, developed, customised, supplied, delivered, installed, configured, integrated, interfaced, tested, commissioned and maintained in accordance with the scope of works upon the terms and subject to the conditions as set out in the CA (“SKIN Solutions”).

2.2 The CA shall be conditional upon PSKIN having obtained a written notice from the Government confirming that PSKIN has fulfilled the conditions precedent (as stated in the CA) within 6 months from the date of execution of the CA or such extended period not exceeding 3 months as may be granted by the Government (“Effective Date”).

2.3 The Concession shall be for a period of 15 years commencing from the Effective Date or the date of commencement of the development works (“Development Commencement Date”), whichever is later and expires on the 15th anniversary of that date, as may be extended or earlier determined in accordance with the terms of the CA (“Concession Period”).

2.4 The development works for SKIN Solutions is expected to be completed within 36 months from the Development Commencement Date or any extended period thereof in accordance with the terms of the CA (“Development Period”). The maintenance services shall commence from the date of issuance of the certificate of acceptance of SKIN Solutions by the Government and ending on the expiry of the Concession Period (“Maintenance Services Period”).

2.5 Payment to Prestariang in the amount as stated in our announcement dated 18 November 2016 shall commence upon commissioning of SKIN Solutions from year 4 to year 15 during the Maintenance Services Period in accordance with and subject to the terms and conditions of the CA.

3. INFORMATION ON PSERVICES AND PSKIN

PServices, a 70% subsidiary company of PRESBHD, is a private limited company incorporated on 18 December 2014 under the Companies Act, with its registered office at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan.

PSKIN, a wholly-owned subsidiary of PServices, is a private limited company incorporated on 16 April 2015 under the Companies Act, with registered office at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan.

PSKIN is the special purpose vehicle incorporated by PServices solely for the purpose of undertaking the Concession. It currently has a total issued share capital of RM5,000,000.

4. FINANCIAL EFFECTS

The Concession is expected to contribute positively to the future earnings/earnings per share and net assets per share of PRESBHD Group. The development cost is expected to be financed via a combination of internally generated funds, borrowings and/or other fund raising exercise.

5. RISKS

The Concession will be subjected to the usual project and termination risks in relation to the CA. However, the board of directors of PRESBHD (“Board”) and the management of PRESBHD endeavour to take the necessary steps to minimise or mitigate any risks that may arise pursuant to the Concession as and when it occurs.

6.  DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHARHOLDER’S INTERESTS

None of the directors of PRESBHD (“Directors”) and/or major shareholders or any person connected to the Directors and/or major shareholders of PRESBHD has any interest, either direct or indirect in the CA.

7.  DIRECTORS’ STATEMENT

The Board is of the opinion that the CA is in the best interest of PRESBHD Group.

This announcement is dated 18 July 2017.