Investors | Axiata Group Berhad

Memorandum Of Understanding

Back 02 Sep 2013

Type	Announcement
Subject	MEMORANDUM OF UNDERSTANDING
Description	MEMORANDUM OF UNDERSTANDING BETWEEN CELCOM AXIATA BERHAD (“CELCOM”) AND MY E.G. SERVICES BERHAD (“MYEG”)
1.0 Introduction The Board of Directors of Axiata wishes to announce that Celcom Axiata Berhad (“Celcom”), a wholly owned subsidiary of Axiata Group, had today entered into a Memorandum of Understanding with MY E.G. Services Berhad (“MYEG”) to jointly explore possible business opportunities and collaboration in the areas of e-Government services delivery and joint go-to-market for specific target market segments (“Project”). (Celcom and MYEG are referred to hereafter as “Parties”) This MOU, which is valid for a period of 1 year, forms the basis of the Parties collaboration until such time definitive agreement(s) are entered. The MOU may be further extended by the Parties unless earlier terminated or upon execution of the definitive agreement(s). 2.0 Information on the Companies Celcom Celcom was incorporated in Malaysia on 5 January 1988. The issued and paid-up share capital of Celcom stands at RM1,237,534,681 comprising 1,237,534,681 ordinary shares of RM1.00 each. As Malaysia’s premier mobile telecommunications provider, it has the widest network covering over 98% of the population. Besides leading in mobile broadband, Celcom is moving towards integrated multi-access and multimedia services, in line with evolving technologies and consumer behaviour in Malaysia. MYEG MYEG was incorporated in Malaysia as a private limited company on 17 February 2000 and assume its present name in conjunction with its listing on the MESDAQ Market on 13 April 2005. MYEG’s issued and paid-up share capital stands at RM59,631, 540 (excluding 4,735, 600 treasury shares) comprising ordinary shares of RM0.10 each. MYEG is principally engaged in the businesses of development and implementation of the Electronic Government Services project and the provision of other related IT based solutions, as well as investment holding. 3.0 Rationale for the Entry into the MOU The Parties shall collaborate and work together to determine the viability of the Project for the Parties’ best interests. The MOU shall form the basis of consensus of the Parties to examine the feasibility of the Project until such time as the definitive agreement(s) is entered into by the Parties. 4.0 Approval of Shareholders and Authorities The entry by Axiata and/or Celcom into the MOU is not subject to approval of the shareholders of Axiata and/or regulatory authorities. 6.0 Financial Effects The entry into the MOU does not have any effect on the issued and paid-up share capital of Axiata and is not expected to have any material effect on the earnings, gearings and net assets of the Axiata Group for the financial year ending 31 December 2013. 7.0 Interest of Director and Major Shareholder None of Axiata’s Directors, major shareholders and/or persons connected to them has any direct or indirect interest in the MOU. 8.0 Directors’ Opinion The Board of Axiata is of the opinion that the entry into the MOU is in the best interest of Axiata Group. This announcement is dated 2 September 2013.

Announcement Info

Company Name	AXIATA GROUP BERHAD
Stock Name	AXIATA
Date Announced	2 Sept 2013
Category	General Announcement
Reference No	AG-130902-3D59A