ARB terminates MoU for Cambodian market entry

ARB terminates MoU for Cambodian market entry
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KUALA LUMPUR (Dec 9): ARB Bhd has terminated a Memorandum of Understanding (MoU) that was aimed at facilitating the group’s foray into Cambodia to implement the enterprise resource planning (ERP) system and solutions there.

In a bourse filing, ARB said that its wholly-owned subsidiary ARB Development Sdn Bhd, and East Insurance PLC, had mutually agreed to terminate the MoU with immediate effect.

The reason for this was East Insurance’s internal restructuring exercise, it said.

“Subsequent to the signing of the MOU, East Insurance undertook an internal restructuring exercise. Hence, the group has decided to terminate the MoU, until East Insurance completes its restructuring exercise.

“Notwithstanding the termination, the group continues to explore for business potential and look out for other business opportunities in Cambodia,” ARB said.

The MoU, announced by ARB on June 17, was for a project valued at no less than US$20 million (RM83.6 million). ARB Development and East Insurance were to have collaborated in the development and implementation of an ERP system in East Insurance’s Cambodian branch’s insurance operation platform.

Incorporated in 2017, East Insurance is principally involved in the provision of general and life insurance coverage in Canada.

Shares of ARB closed 4.48% or 1.5 sen lower at 32 sen today, giving the group a market capitalisation of RM90.56 million.