OTHERS ManagePay Systems Berhad ("MPay" or the "Company") - Acceptance of Letter of Appointment as an Authorised Installer for MYTV Boardcasting Sdn. Bhd. ("MYTV") "Return to Sender" Customer Premise Equipment ("MYTV CPE") for Bantuan Sara Hidup Rakyat ("BSHR") Recipients
|MANAGEPAY SYSTEMS BERHAD|
ManagePay Systems Berhad ("MPay" or the "Company") - Acceptance of Letter of Appointment as an Authorised Installer for MYTV Boardcasting Sdn. Bhd. ("MYTV") "Return to Sender" Customer Premise Equipment ("MYTV CPE") for Bantuan Sara Hidup Rakyat ("BSHR") Recipients
Details of the Announcement
The Board of Directors of the Company wishes to announce that the Company had on 9th August 2019 accepted a Letter of Appointment ("LOA") from MYTV for the Company to act as an Authorised Installer to manage the delivery and installation of MYTV CPE for BSHR recipients (“Project”), subject to the provisions, terms and conditions in the LOA dated 9th August 2019. The scope of the service is to identify qualified BSHR recipients and to deliver and install MYTV "Return to Sender" CPE comprising Digital Terrestrial Television (“DTT”) and Direct-To-Home (“DTH”) Set-top Boxes, UHF Antenna or Satellite Dish, RG6 cables and accessories at the respective BSHR recipients’ houses.
Details of the Project
The LOA was awarded in response to the Company’s proposal dated 2nd July 2019.
Upon receiving this LOA, the Company can commence the solicitation of BSHR recipients to receive the free MYTV CPE while installation works shall start from 1st September 2019 and to be completed by 31st August 2020.
The Company will receive stock of MYTV CPE and manage stock control at the Company’s premise as the risk of the aforesaid equipment is with the Company once the Company receives the CPE from MYTV. The Company shall only deal with the BSHR recipients’ data to fulfil its obligations under this LOA.
Rationale and Prospect
The Malaysian Government is in the process of migrating the country's broadcasting system from analogue to full digital broadcast by the third quarter of 2019. MYTV is appointed to develop and operate digital infrastructure and digital network services in Malaysia to migrate national broadcasting systems from analog to digital. To enjoy MYTV digital broadcast, viewers will need to connect current TV and the UHF aerial to a MYTV CPE i.e. DVB-T2 or DTT-T2 decoder.
According to Bernama news dated 2nd April 2019 that, as of March 30, about 1.7 million MYTV set top boxes (STB) have been delivered to B40 households. It quoted Communications and Multimedia Minister, Gobind Singh Deo, as saying “it comprised 1,651,333 digital terrestrial TV ("DTT") decoders and 24,482 direct-to-home ("DTH") decoders.”
The LOA is awarded to the Company with the objective to deliver the MYTV’s “Return To Sender” CPE to more qualified BSHR recipients and duly install the CPEs so that more BSHR household will get to enjoy the free 13 TV and 6 FM Radio channels in high quality sound and visuals. In the future, households also can access multiple interactive services via MYTV CPE such as home shopping, video-on-demand, pay TV subscription and Internet services.
The Board is not aware of any risk factors arising from the LOA other than execution risks such as delay in installing of MYTV CPE and shortage of manpower resources.
Financial Effects of the Project
The Project will not have any material effect on the earnings per share, net assets per share and gearing of the Company and its subsidiaries (the “Group”) for the financial year ending 31st December 2019 (“FY2019”). However, it is expected to contribute positively to the Group's revenue for FY2019.
Directors’ and major shareholders’ interest
None of the Directors and/or major shareholders of MPay and/or persons connected with them have any interests, direct or indirect, in the Project.
Statement by Directors
Having considered all aspects of the Project, the Board of Directors of MPay is of the opinion that the Project is in the best interest of the Group.
The Project does not require approval of the shareholders of MPay and any relevant regulatory bodies.
This announcement is dated 14 August 2019.
|Company Name||MANAGEPAY SYSTEMS BERHAD|
|Date Announced||14 Aug 2019|
|Category||General Announcement for PLC|