KUALA LUMPUR (March 19): Dagang NeXchange Bhd (DNeX), through a consortium formed among its business unit PT DNeX Telco Indonesia (PT DTI), PT Samudera Mbiantu Sesami (PT SMS) and PT Infrastruktur Telekomunikasi Indonesia (TelkomInfra), has bagged a contract worth RM12.18 million for the main laying work of submarine cables in Indonesia.

DNeX said in a statement that the contract, which is expected to commence immediately, entails the installation of the Luwuk-Morowali-Kendari and Labuan Bajo-Raba submarine cables for about 63 days.

Dagang Net Technologies Sdn Bhd, a wholly-owned subsidiary of DNeX, is the 49% registered owner of PT Dagang Samudera Hutama (PT DSH). PT DTI is a 95%-owned subsidiary of PT DSH.

Meanwhile, TelkomInfra is a wholly-owned subsidiary of PT Telkom Indonesia Tbk, an Indonesian multinational telecommunications conglomerate listed on the Indonesia Stock Exchange and has a secondary listing on the New York Stock Exchange.

“We are pleased to secure this contract as we focus on building a strong track record in submarine cable laying and repair works in Indonesia. This contract is a follow-through from the consortium agreement we signed recently, and serves as the precursor of a long-term partnership agreement among PT DTI, PT SMS and TelkomInfra,” said Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir, the group managing director of DNeX.

“Based on our experience, we are capable of delivering top-notch services that meet the client’s quality specifications and project schedule,” he said.

According to the statement, a consortium agreement was signed by PT DTI, PT SMS and TelkomInfra on Jan 25, 2021. Based on the terms of the agreement, the consortium is established for a period of three years and may be extended over the next three years. Upon securing the first contract, all parties are expected to enter into a definitive partnership agreement.

At the noon break today, DNeX settled one sen or 1.04% lower at 95 sen, valuing the group at RM2.07 billion.