KUALA LUMPUR (Jan 26): Dagang NeXchange Bhd (DNeX) has clarified that other than a consortium agreement signed by its unit yesterday, it has not received a letter of award nor has it entered into an agreement with the Indonesian government for a cable laying, maintenance and repair job there.
“The board of directors of DNeX wishes to clarify that as of the date of this announcement, saved for the signing of the consortium agreement, the company has not received any letter of award nor has it entered into any other agreement with an Indonesian government-linked company for cable laying, maintenance and repair job in Indonesia, which was reported in the said article,” it stated in a Bursa Malaysia announcement today.
DNeX was responding to an article published in The Edge Malaysia dated Jan 25 entitled "DNeX close to bagging cable laying, maintenance and repair job in Indonesia".
The article quoted sources as saying the company was close to getting a three-year contract from the Indonesian government for the maintenance and repair of submarine cables worth RM200 million to RM250 million.
The Bursa filing today noted: “The board is cognisant of the need for proper dissemination of information to the public, and would release announcements on Bursa on any material issue or development arising from the above event which shall include the length of the agreement, its contract value and any other material information on a timely basis in accordance with the Listing Requirements."
Yesterday, DNeX said in a statement that it had inked a consortium agreement with PT Infrastruktur Telekomunikasi Indonesia (TelekomInfra) to maintain submarine cables.
Under the deal, it said the consortium is established for a period of three years and may be extended over the next three years, adding that upon securing any contract, all parties will enter into a definitive partnership agreement.
DNeX signed the agreement via a consortium comprising its unit PT DNeX Telco Indonesia (PT DTI) and PT Samudera Mbiantu Sesami (PT SMS).
Shares in DNeX closed two sen or 6.67% lower at 28 sen today, giving it a market capitalisation of RM572.43 million.