News

INTRODUCTION

The Board of Directors of Prestariang Berhad (“Prestariang” or “the Company”) is pleased to announce that today, Prestariang had received the Letter of Intent (“LOI”) from Majlis Amanah Rakyat (“MARA”) dated 19 November 2014 expressing MARA’s intention to acquire thirty percent (30%) interest in Prestariang Education Sdn Bhd (“PESB”), a wholly owned subsidiary of Prestariang Berhad, the entity that established University Malaysia of Computer Science & Engineering (“UniMy”) (“Proposed Acquisition”).

DETAILS OF THE LOI

BACKGROUND OF LOI

On 26 November 2014, Prestariang received the LOI from MARA indicating its intention to acquire thirty percent (30%) interest in PESB and also expressed its interest to increase its stake in PESB in the future.

CONSIDERATION

As a consideration, MARA shall be driving student placements at UniMy via its scholarship and education financing program. The number of students placed as consideration shall be determined upon the execution of a definitive agreement and related agreements with respect to the Proposed Acquisition.

The eventual structure and consideration of the proposed acquisition will be mutually agreed by both Prestariang and MARA.

FINANCIAL EFFECTS

To remain competitive, the focus has always been about the sustainability of the business. It is envisioned that the proposed acquisition, hence collaboration would improve the overall performance of UniMy via student enrolments.

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

Prestariang expects this LOI to contribute positively towards the growth of the company.

RATIONALE OF THE LOI

The LOI formalises Prestariang to commence an exclusive negotiation with MARA for the Parties to proceed with the Proposed Acquisition.

The Proposed Acquisition is in the best interest of PESB.

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 LOI.

DIRECTORS’ STATEMENT

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

This announcement is dated 26 November 2014.