MICROLINK SOLUTIONS BERHAD
|Description||MICROLINK SOLUTIONS BERHAD
LETTER OF AWARD FROM POS MALAYSIA BERHAD – APPOINTMENT TO PROVIDE SERVICES FOR PROPOSED DIGITAL SOLUTION AND INNOVATION FOR PILOT PHASE
The Board of Directors of Microlink Solutions Berhad (â€œMSBâ€ or â€œthe Companyâ€) wishes to announce that the Company has on 7 August 2020 received a Letter of Award (â€œLOAâ€) from Pos Malaysia Berhad (â€œPos Malaysiaâ€) for the appointment of the Company to provide services (as further elaborated under items (i) to (iii) below) in relation to the development of a digital solution platform and innovation channel for the operational improvement and commercial benefit for Pos Malaysia for an initial duration of nine (9) months, the first three (3) months of which shall consist of the development and deployment stage and the subsequent six (6) months of a Pilot Go-Live stage. The services shall commence from the date of acceptance of the LOA. The total contract sum will be on a revenue sharing basis during the Pilot Go-Live stage, whereby MSB and Pos Malaysia have agreed that the revenue sharing amount shall be twelve per cent (12%) of Pos Malaysiaâ€™s nett revenue generated from the usage of the Software (as defined under item (i) below), calculated based on a monthly report of all transactions made for that month which shall be submitted by MSB to Pos Malaysia. The LOA and the terms and conditions contained therein shall hereinafter be referred to as â€œthe Pos Contractâ€.
As part of the Pos Contract, MSB shall perform the services as follows:-
(i) design and develop a digital solution platform and innovation channel platform to enable Pos Malaysiaâ€™ customers to subscribe/procure or renew insurance policies via a digital channel from relevant insurance providers (â€œSoftwareâ€) as contained in Pos Malaysiaâ€™s existing system or third party systems;
(ii) install and integrate the Software with Pos Malaysiaâ€™s digital channel; and
(iii) Pilot Go-Live of the Software.
The POS Contract is subject to the acceptance of the LOA by the Company.
The LOA will have no effect on the issued share capital and substantial shareholdersâ€™ shareholdings of the Company. The LOA is expected to contribute positively to the revenue, earnings per share and net assets per share of MSB Group and is not expected to have a material effect on the gearing of MSB Group for the financial year ending 31 March 2021.
The Company does not foresee any exceptional risk other than operational risk associated with the LOA during the Pos Contract period.
None of the Directors and/or the substantial shareholders of the Company and/or persons connected with the Directors and/or substantial shareholders have any interest, direct or indirect in the LOA.
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 10 August 2020.