PRESTARIANG BERHAD ("PRESBHD")
- CONCESSION AGREEMENT BETWEEN THE GOVERNMENT OF MALAYSIA AND PRESTARIANG SKIN SDN. BHD. ("PSKIN")
We refer to our announcement on 20 November 2015 and series of subsequent announcements thereafter in relation to the implementation of an integrated and comprehensive core immigration system known as ‘Sistem Kawalan Imigresen Nasional’ (“SKIN”) leading to the signing of the Concession Agreement (“CA”) dated 9 August 2017 with the Government of Malaysia (“Government”).
The Company wishes to announce that PSKIN had received a letter from the Ministry of Home Affairs dated 11 December 2018, confirming the decision of the Cabinet to terminate the SKIN project by way of expropriation. The termination will take effect on 19 January 2019.
The Company also wishes to reiterate that PSKIN is not in default of the CA. PSKIN is entitled to compensation in accordance with the formula set out in the CA and will enter into discussions with the Government to settle amicably in the interests of both parties.
Depending on the final amount of compensation for the termination, the termination of the CA may have a negative impact on the 15-month financial period ending 31 March 2019 of the Group. The actual financial impact can only be ascertained once PSKIN’s negotiation and discussion with the Government has been concluded.
The Board wishes to highlight that the Group currently has other existing contracts under the Technology and Talent division which include our Software, Training and Education businesses. These businesses are expected to continue to be sustainable and viable. The Company therefore will continue to focus on growing these existing businesses. In this respect, the Board is confident on the Group’s ability to continue to meet its existing financial obligations.
In respect of the obligations of PRESBHD’s subsidiary, Prestariang Services Sdn Bhd (“PServices”) and PServices’ group of companies, these will be determined by the outcome of the negotiations with the Government.
The Company will make the necessary announcements once there is any material development in relation to the above.
This announcement is dated 12 December 2018.
|Company Name||PRESTARIANG BERHAD|
|Date Announced||12 Dec 2018|
|Category||General Announcement for PLC|