OTHERS ANCOM BERHAD - TERM SHEET FOR THE PROPOSED COLLABORATION BETWEEN ANCOM BERHAD AND MANAGEPAY SYSTEMS BERHAD TO SET UP A JOINT-VENTURE COMPANY TO ACQUIRE CROSS BOARDER ELECTRONIC PAYMENT SERVICES IN MALAYSIA FOR THE PROMOTION OF MALAYSIAN TOURISM INDUSTRY TO CHINESE TOURISTS
|Description||ANCOM BERHAD - TERM SHEET FOR THE PROPOSED COLLABORATION BETWEEN ANCOM BERHAD AND MANAGEPAY SYSTEMS BERHAD TO SET UP A JOINT-VENTURE COMPANY TO ACQUIRE CROSS BOARDER ELECTRONIC PAYMENT SERVICES IN MALAYSIA FOR THE PROMOTION OF MALAYSIAN TOURISM INDUSTRY TO CHINESE TOURISTS|
The Board of Directors of Ancom Berhad ("the Company" or "Ancom") wishes to announce that the Company had on 2 May 2017 entered into term sheet with ManagePay Systems Berhad ("MPay") to set up a joint venture company to acquire electronic payment services in Malaysia for promotion of Malaysian Tourism Industry to Chinese tourists ("Term Sheet") ("Proposal"). (Ancom and MPay are collectively referred to as the "Parties").
Ancom and MPay are expressing their intention to collaborate for the set-up of a joint-venture company for the Proposal leveraging on MPay's subsidiaries' capabilities to operate electronic payment system and merchant aggregator business consented by various authorities which is capable of providing merchant acquisition services nationwide, deploy Quick Response ("QR") code scanner or two-in-one smart Point-of-Sales ("POS") terminal, and provides support services to merchants. MPay, as a merchant aggregator, also possess the necessary electronic commerce market place development technology and capability to power a B2B2C Travel Portal for the Malaysian Travel and Entertainment industry, inclusive but not limited to travel related products and services or tour packages targeting all tourists, in particular Chinese tourists from China ("the Project").
The Proposal will enable the Company to expand its earning base and diversify into new business.
Upon signing the Term Sheet, the Parties will proceed with the next steps to:
1. Define and agree on the detailed program mechanics, implementation work plan, incorporating technology implementation phase.
2. Finalise and sign the contractual joint-venture agreement for the Proposal.
3. Deploy resources and commence implementation with a view to launch services within a timeframe to be agreed upon.
The salient obligations of the Parties are as follows:-
1. MPay will provide expertise and resources to assist the said joint-venture company to obtain the required license from the local authority and approval from the merchant for the operation of cross-border acquiring business services, as well as setting up a complete system for the Project.
2. The Company will form the said join-venture company with MPay for the Proposal and assist the said joint-venture company to obtain the required approval from the merchant for the operation of cross-border acquiring business in Malaysia as well as to propose to Malaysian Tourism Promotion Board to allow the said joint-venture company to set up a formal B2B2C Travel Portal promoting Malaysian Travels and Entertainment industry to Chinese Tourists from China.
The Term Sheet shall come into force on the date it is signed and executed by the Parties and shall continue in force and effect for a period of three (3) months) (herein referred as the "Initial Term"). On the expiry of the Initial Term, the Term Sheet shall be automatically be renewed for a further 3-month period (herein referred as the "Extended Tern") on the same terms and conditions unless prior written notice to be contrary is given by one Party to other Parties at least fourteen (14) days prior to the expiration of the Initial Term, in the event that both Parties do not execute a joint-venture agreement by the expiry of the Initial Term (if not extended) or Extended Term as the case may be, this Term Sheet shall be lapsed and with no effect.
None of the directors and/or major shareholders of the Company or persons connected to them have any interest, direct or indirect, in the Proposal.
The Company will make further announcement(s) to Bursa Malaysia Securities Berhad ("Bursa Securities") in a timely manner in accordance with the Bursa Securities's Listing Requirements, as and when necessary.
The Term Sheet is available for inspection at the registered office of Unit 30-1, Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, during office hours from Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement.
This announcement is dated 3 May 2017.