KUALA LUMPUR (Sept 11): Dagang NeXchange Bhd (DNeX)’s unit has inked a preliminary agreement with PT Infrastruktur Telekomunikasi Indonesia (TelkomInfra) to look into establishing a partnership to undertake the business of submarine cable deployment, maintenance and repair within and outside Indonesia.

In a stock exchange filing, DNeX said its indirectly held PT DNeX Telco Indonesia inked the Memorandum of Understanding with TelkomInfra today that expressed their intention to carry out an assessment of the potential partnership that will make use of DNeX's cable ship, CS DNeX Pacific Link, as the main vessel.

“The MoU paves the way for DNeX group to expand its provision of services for submarine cable installation and repair works within and outside the territory of Indonesia and is expected to potentially boost the income of DNeX group in the future,” said DNeX.

TelkomInfra, which is principally engaged in the field of telecommunications infrastructure in Indonesia, is a wholly-owned unit of Indonesia's telco group, PT Telkom Indonesia Tbk or Telkom Indonesia.

The MoU, DNeX said, will be valid for 12 months.

DNeX's share price closed unchanged at 19 sen today, bringing it a market capitalisation of RM334.04 million. There were some 14.52 million shares done. The stock has lost over 30% year to date.