AMDB's Joint venture to provide central reservation services and related services
| ARAB-MALAYSIAN DEVELOPMENT BERHAD |
| Type | Reply to query |
| Reply to Query Letter by KLSE reference ID | MJ-000921-62024 |
| Subject | AMDB's Joint venture to provide central reservation services and related services |
Contents :
We refer to our announcement made to the Exchange on 30 March 2000 in relation to a joint venture with Hospitality Solutions (Malaysia) Sdn Bhd and Harbans Singh a/l Gopal Singh to provide central reservation services (including call centres) and related services to hotels, resorts, golf clubs, travel agents, educational institutions, vehicle rental companies and other establishments requiring such services.
We wish to announce that the conditions precedent in the Joint Venture agreement (“JVA”) have been fulfilled and an existing AMDB subsidiary, AMDB-HSI Sdn. Bhd. (formerly known as Arab-Malaysian Warehousing Sdn. Bhd.), has been identified to be the joint venture company for this purpose. In accordance with the terms of the JVA, AMDB will have a 65% equity interest in AMDB-HSI Sdn. Bhd. (“AHSB”).
AHSB has set up a Call Centre recently to provide reservation services to selected hotels which involve managing the rooms reservation departments of the hotels by handling calls made direct to the hotels by their guests in relation to room reservations. With the same Call Centre, AHSB has also launched a new service “Dial a Room” whereby the public can call the Call Centre to make room reservations at competitive rates for most grades of hotels in Malaysia and Singapore. The public can also make reservations online through its website.
This Call Centre business is undertaken by another existing AMDB subsidiary, ORS Online Reservations Sdn. Bhd. (“ORS”) (formerly known as Valiant Acres Sdn. Bhd) in which AHSB will have a 90% equity interest. The remaining 10% equity interest will be held by Hotel Data Systems, Inc. (“HDS”) in consideration for its supply of the central reservation software to ORS subject to mutually acceptable terms and conditions which are being negotiated at present. HDS is a company incorporated in the United States of America which is engaged in the business of development and distribution of ‘central reservations’ software products for the hospitality and related industries.
ORS is expected to incur costs of approximately RM2,000,000 in this Call Centre business during the initial phase up to March next year. Such costs include the purchase of hardware, software, other fixed assets, advertising and promotion expenses and other operating costs. ORS has also planned to expand this business to neighbouring countries and has had preliminary discussions with potential partners in Thailand, Indonesia and Philippines in this regard.
Query Letter Contents :
We refer to the above news article appearing in Web Page of The Edge on
Thursday, 21 September 2000.
In particular, we would like to draw your attention to the following sentences
of the above article which are reproduced as follows:-
" Arab-Malaysian Development Bhd has invested about RM2 million to venture
into online hotel room reservations that covers Malaysia and Singapore."
"......Arab-Malaysian Development held a 65 per cent stake in a
locally-incorporated joint-venture company, Online Reservations Sdn Bhd."
" The other partners are Hospitality Solutions (M) Sdn Bhd and US-based Hotel
Data Systems, which jointly hold a 35 per cent stake in the new company."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the above
sentences after due and diligent enquiry with all the directors, substantial
shareholders and all such other persons reasonably familiar with the matters
about which the disclosure is to be made in this respect. In the event you deny
the above sentences or any other part of the above reported article, you are
required to set forth facts sufficient to clarify any misleading aspects of the
same. In the event you confirm the above sentences or any other part of the
above reported article, you are required to set forth facts sufficient to
support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
Inderjit Singh
Senior Manager, Listing Operations
SA/CMJ
Copy to: Securities Commission (via fax)
Announcement Info
| Company Name | ARAB-MALAYSIAN DEVELOPMENT BERHAD |
| Stock Name | AMDEV |
| Date Announced | 22 Sept 2000 |
| Category | General Announcement |
| Reference No | AD-000922-62618 |