Mesiniaga bags RM24.18m contract from TNB

Mesiniaga bags RM24.18m contract from TNB
-A +A

KUALA LUMPUR (Sept 11): Mesiniaga Bhd has bagged a contract worth RM24.18 million from Tenaga Nasional Bhd (TNB).

In a bourse filing today, the information technology (IT) system integrator and solution provider said it had accepted a letter of award from TNB for the supply, installation, configuration, testing, commissioning and migration of existing services of the TNB Industrial Control System (ICS) IP/MPLS Network (Phase 2).

It said the contract shall have commenced on Sept 10, 2020 (yesterday) and is expected to complete by Sept 9, 2022.

In addition, Mesiniaga said the proposed transaction will have a positive effect on the company’s net assets for the financial year ending Dec 31, 2020 (FY20).

Besides, it is also expected to contribute positively to the company’s earnings over the period of the contract.

On risks related to the contract, Mesiniaga said these include meeting deadlines imposed by the customer and meeting the terms of the service level commitments. However, the company has taken the necessary steps to mitigate the risks.

“The board of directors of the company is of the opinion that the said contract is in the ordinary course of business and best interest of the company. 

 “In addition to the company’s information disclosed, the management would like to inform that the contract will have a positive effect on earnings per share.

“The contract, however, is not likely to have an effect on the dividend policy, gearing, share capital and the substantial shareholders’ shareholdings in the company for FY20,” Mesiniaga said in the filing.

At the 12.30pm break, shares in Mesiniaga were two sen or 1.67% higher at RM1.22, valuing the company at RM73.69 million. It saw some 418,00 shares change hands.

Surin Murugiah