1. INTRODUCTION
The Board of Directors of RANHILL is pleased to announce that the Company, had on 17 March 2023 entered into an MOU with AWC Berhad (“AWC”) to explore opportunities and to enter into strategic collaboration to expand water business in Indonesia (“Collaboration”).
(each hereinafter referred to as a “Party”, and collectively “the Parties”).
2. INFORMATION ON AWC
AWC is an investment holding company with subsidiaries involved in Engineering Services.
3. SALIENT TERMS OF THE MOU
The MOU expressed the intention of both Parties to jointly explore and collaborate in water business in Indonesia with the aim of entering into a formal agreement (“Detailed Agreement”) to define in more detail the rights and obligations of the Parties.
The detailed scope of work, rights and responsibilities, duties and obligations of each Party for the Collaboration shall be subsequently negotiated, discussed, finalized and mutually agreed upon in the Detailed Agreement.
3.1 Validity of the MOU
The MOU is valid for a period of twelve (12) months from the date of signing of the MOU and may be terminated by mutual agreement or by the non-defaulting party at any time in the event the other party commits a material breach of the terms and conditions of the MOU.
The Parties undertake and endeavour to conclude and sign the Detailed Agreement no later than twelve (12) months from the date of the MOU unless extended in writing by mutual agreement of the Parties.
4. FINANCIAL EFFECTS OF THE MOU
The execution of the MOU will not have any material effect on the earnings, net assets and gearing of RANHILL for the current financial year ending 31 December 2023.
5. DIRECTORS AND MAJOR SHAREHOLDERS’ INTEREST
None of the Directors, Major Shareholders of the Company and persons connected with them have any interest, directly and/or indirectly, in the MOU.
6. STATEMENT BY DIRECTORS
The Board, having taken into consideration all aspects of the MOU, is of the opinion that the MOU is in the best interest of RANHILL Group.
The Company will make the necessary announcement on further development of the MOU in due course.
This announcement is dated 17 March 2023.