TM wishes to announce that it has today signed a Memorandum of Understanding (“MOU”) with TT dotCom Sdn Bhd (“TTdC”), a wholly-owned subsidiary of Time dotCom Berhad (“TIME”) for the development and construction of a new submarine cable system, called the “Sistem Kabel Rakyat 1 Malaysia (“SKR1M”)”.
On 30 December 2014, TM announced that it was awarded by the Malaysian Communications and Multimedia Commission (“MCMC”) a contract via an open tender process to develop and construct SKR1M cable system. The project will be established through a Public-Private Partnership (PPP) arrangement between MCMC and TM.
In the spirit of supporting the Government’s aspiration in fostering partnerships amongst industry players, TM is partnering up with TIME to jointly deploy the SKR1M cable system with the establishment of the SKR1M Consortium.
Upon the signing of the MOU and the formation of the SKR1M Consortium, the Parties shall proceed with the tender exercise to determine the preferred technology partner to supply, deliver and implement the SKR1M network.
During the MOU period, the Parties will also develop the principles for the Construction and Maintenance Agreement (“C&MA”). This C&MA is to establish the rules which shall govern the implementation and management of SKR1M.
The term of duration of the MOU is three months or it will expire upon execution of the C&MA, whichever is earlier.
Save as disclosed below, none of the Directors and other major shareholders of TM and/or persons connected to them has any interest, whether direct or indirect, in the MOU:-
1) Khazanah Nasional Berhad (“Khazanah”), a common major shareholder of both TM and TIME;
2) Tunku Dato’ Mahmood Fawzy Tunku Muhiyiddin, a nominee Director of Khazanah; and
3) Nik Rizal Kamil Tan Sri Nik Ibrahim Kamil, alternate director to Tunku Dato’ Mahmood Fawzy Tunku Muhiyiddin.
Further details and relevant information would be disclosed upon the execution of the C&MA between TM and TTdC.