The
Board of Directors of Scan Associates Berhad ("SCAN" or "Company") is
pleased to announce that SCAN had on 26 November 2010, accepted the
Letter of Award ("LOA") dated 25 November 2010 for the tender for
“MAMPU/Perkhidmatan/3/2010 Bagi Perkhidmatan Sokongan Keselamatan
Rangkaian ICT Sektor Awam Dan Perkhidmatan Menyelenggara Perkakasan,
Perisian, Aplikasi Serta Sistem Rangkaian Prisma Secara Komprehensif”
from Unit Pemodenan Tadbiran Dan Perancangan Pengurusan Malaysia
(“MAMPU”)(the “Project”).
With the acceptance of the LOA from MAMPU, the parties will enter into a formal agreement in due course.
TOTAL VALUE OF THE PROJECT
As specified in the LOA, the total contract value is RM14,984,000.00 only.
DURATION OF THE PROJECT
The Project is for a duration of 2 years from 1 December 2010 to 30 November 2012.
TOTAL CAPITAL AND INVESTMENT OUTLAY IN THE PROJECT
The
Project involves support and maintenance of security ICT system
including its hardware, software, application and network. Therefore it
requires some capital outlay.
THE SOURCE(S) OF FUNDS FOR FINANCING THE INVESTMENT IN THE PROJECT
SCAN shall fund the working capital for the Project through internally generated funds and project financing.
THE TERMS OF COST AND PROFIT SHARING
There is no provision on the cost and profit sharing stipulated in the LOA.
FEASIBILITY STUDY
There is no feasibility study undertaken in respect of the Project.
DESCRIPTION OF THE PROSPECT AND RISK FACTORS INVOLVED IN UNDERTAKING THE PROJECT
The
prospect of the Project is positive. Risk exposure is limited to the
operational risk which can be mitigated as the Company has vast
experience in this business.
FINANCIAL EFFECTS
The grant of the LOA is expected to contribute positively towards/enhance the Group’s earnings and net tangible assets.
It
will have no effect on the issued and paid-up capital and substantial
shareholders’ shareholding of the Company. It will also have no material
effect to the dividend policy and gearing of the Company.
APPROVAL OF THE SHAREHOLDERS AND RELEVANT GOVERNMENT AUTHORITIES
This
LOA is in the ordinary course of business and not subject to the
approval of the shareholders of SCAN or any government authorities.
DIRECTORS' AND MAJOR SHAREHOLDERS’ INTEREST
None
of the Directors or major shareholders or persons connected to the
Directors or major shareholders has any direct or indirect interest in
the LOA.
DIRECTORS' RECOMMENDATION
The Board of Directors of the Company is of the opinion that the acceptance of the LOA is in the best interest of the Company.
This announcement is dated 29 November 2010