KUALA LUMPUR (Nov 23): Mesiniaga Bhd has inked an agreement to provide hardware and software services for an information technology (IT) and engineering network modernisation project with Maxis Broadband Sdn Bhd for RM22 million.
The duration of the contract is from Nov 19, 2020 to Dec 31, 2025, the group said in a filing with Bursa Malaysia today.
However, the duration of the contract may be extended by way of mutual agreement between Maxis Broadband Sdn Bhd and the company.
“The proposed transaction will have a positive effect on the company’s net assets for the financial year ending Dec 31, 2020 (FY20). It is also expected to contribute positively to the company’s earnings over the period of the contract.
“In addition to the company’s information disclosed, the management would like to inform that the contract will have a positive effect on its earnings per share (EPS) and gearing,” it said.
Shares in Mesiniaga ended one sen or 0.8% lower at RM1.24, with a market capitalisation of RM74.9 million.