Mar 12, 2018 - Announcement of an Agreement entered into between IDOTTV Sdn ... Energy Sdn. Bhd. for the delivery of Gre
SEDANIA INNOVATOR BERHAD (Company No. 1074350 A) Announcement of an Agreement entered into between IDOTTV Sdn Bhd and Matrix Energy Sdn. Bhd. for the delivery of Green Technology Solutions for a telecommunication company in Malaysia 1.
INTRODUCTION The Board of Directors of Sedania Innovator Berhad (“Sedania” or the “Company") is pleased to announce that on 9 March 2018, the Company's wholly owned subsidiary, IDOTTV Sdn Bhd (“IDOTTV”) has entered into a Strategic Partnership Agreement with Matrix Energy Sdn Bhd (“MESB”) for the partnership to design, install and commissioning of Energy Saving Devices and provision of other solutions designed to reduce energy consumption (“Green Technology Solutions”) for a telecommunication company in Malaysia for a period of ten (10) years (“Agreement”).
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DETAILS OF THE AGREEMENT
2.1 Salient terms i.
IDOTTV and MESB shall collaborate to undertake provision of Green Technology Solutions at selected facilities owned by the telecommunication company. IDOTTV shall be responsible to procure Green Technology Solutions at its own costs and expenses.
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IDOTTV and MESB shall project manage and provide installation of the Green Technology Solutions at the pre-determined locations and any selection of vendor or supplier shall be at IDOTTV’s discretion.
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Historically the average electricity bills for the selected facilities was RM2,029,000 per month. Both parties agreed that the targeted energy savings rate shall be on average of 22% from the telecommunication company’s future monthly electricity bills. The achieved energy savings will be shared between all parties.
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The agreement also includes maintenance services of the Green Technology Solutions at the selected facilities.
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The expected timeframe for the installation of the solutions to be completed is seven (7) months ending 30 September 2018.
2.2 Duration of the Agreement The agreement shall commence as of 9 March 2018 and shall continue throughout the period of ten (10) years from the date the Green Technology Solutions are installed in each site.
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BACKGROUND OF MATRIX ENERGY SDN BHD MESB is a certified ISO 9001:2008 Malaysian Energy Services Company (ESCo) registered with Suruhanjaya Tenaga, specialised in Energy Management (Energy Efficiency EE & Renewable Energy RE) include Energy Audits & Evaluation of Cost Savings, Green Technology System Integrator and Energy Performance Contracting Specialist. MESB has effectively implemented many projects from various energy consumers such as financial institutions, hospitals, commercial buildings, fast food chain restaurants and industrial.
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RATIONALE OF THE AGREEMENT
The rationale for the Strategic Partnership is consistent with Sedania Innovator Berhad’s corporate objective of profit maximization, enhancement of shareholders’ value and improve business sustainability. The contract is also part of the Group’s venture in sustainable technology and is expected to contribute positively to growth of the Company.
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EFFECT OF THE AGREEMENT The contract is expected to contribute positively to the Group's earnings and net assets per share for the financial years ending 31 December 2018 to 2028. The risks in respect of the contract are the normal business risks. The Group has taken necessary steps to protect itself and to mitigate the risks when and as it occurs.
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RISKS The Company does not expect any material risk arising from the Agreement other than normal business risk associated with the Agreement for which the Group would take appropriate measures to minimize as it occurs.
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DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS None of the directors and / or major shareholders of the Company or persons connected to them has any interest, direct or indirect in the above contract.
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DIRECTORS’ STATEMENT The Board of Directors is of the opinion that the contract is in the best interest of the Company and not detrimental to the shareholders of the Company given that the contract is part of the Group’s venture in sustainable technology and is expected to contribute positively to growth of the Company. This announcement is also made pursuant to Chapter 9 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad.
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DOCUMENT AVAILABLE FOR INSPECTION The Agreement is available for inspection during normal office hours from Monday to Friday (except public holidays) at the corporate office of Sedania at Level 10, Kelana Parkview Tower, Jalan SS6/2, 47301, Petaling Jaya, Selangor Darul Ehsan for a period of 3 months from the date of this announcement.
