AGREEMENT FOR THE SUPPLY OF MARINE SAND ("PROJECT")
|VIVOCOM INTL HOLDINGS BERHAD|
|Type||Reply to Query|
|Reply to Bursa Malaysia's Query Letter - Reference ID||IQL-01032021-00001|
|Subject||AGREEMENT FOR THE SUPPLY OF MARINE SAND ("PROJECT")|
Agreement for the supply of sand Additional Information
|Query Letter Contents||
We refer to your Company’s announcement dated 26 February 2021, in respect of the aforesaid matter.
1) The date of commencement and completion of the Project.
Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
Cc : Market Surveillance Dept. , Securities Commission (via fax)
We refer to our announcement dated 26 February 2021 in relation to the agreement for the supply of marine sand (the “Project”).
In connection thereto, the Company wishes to provide the following additional information :-
1. The date of commencement and completion of the Project
The Project will start commencing from 1 March 2021 and is expected to run for a minimum period of 3 years. Operationally, the first consignment of sand is expected to be loaded and shipped to Rain International Sdn. Bhd. (“RISB”)’s customer by the end of March 2021.
2. The approvals, licenses, and/or permits required to be obtained by RISB, V Development Sdn Bhd and/or Vivocom Intl Holdings Berhad (“Vivocom”) for the Project
The marine sand will be procured from Malayan Energistik Solutions Sdn Bhd (“MESSB”) vide an extraction and supply agreement signed between MESSB and V-Development Group. MESSB is an Authorized Permit (AP) holder for the export of sand to oversea markets for a period of 3 years. The said approval was obtained by MESSB on 7 October 2019 from the Chief Minister of Department of Sabah.
In addition, RISB has submitted the application for the K2 export permit to the Royal Malaysia Customs and the K2 export permit is expected to be received by 15 March 2021. The Company will update Bursa Malaysia accordingly once the K2 export permit is obtained.
Aside from the K2 permit which is administrative in nature and is required for each consignment, RISB, V Development Sdn Bhd and Vivocom, vide MESSB, have obtained all the necessary approvals and/or permits to commence the Project.
3. The financial impact of the Project on Vivocom Group, upon completion of the Proposed Acquisition by Vivocom of V Development Sdn Bhd
Upon completion of the Proposed Acquisition, the Project is expected to contribute positively to the earnings and net assets of Vivocom for the duration of the Project. The Project will not have any effects on the share capital and shareholding structure of the Company.
4. The risks in relation to the Project
The risk factors affecting the execution of the Project are similar with any commercial ventures, including but not limited to business risks such as performance risk, competition risk, credit risk, foreign currency risk and supply risk. The Board of Directors of Vivocom will constantly monitor the relevant risk factors and take appropriate measures in planning the successful execution of the Project.
5. Whether the directors, major shareholders and/or persons connected with them have any interest, direct or indirect, in any of the Project, and the nature and extent of their interests
None of the directors, major shareholders and/or persons connected to them has any interest, either directly or indirectly in the Project.
This announcement is dated 2 March 2021.
|Company Name||VIVOCOM INTL HOLDINGS BERHAD|
|Date Announced||02 Mar 2021|
|Category||General Announcement for PLC|