KJSB’s parent company Theta Edge Bhd had just started working with TMS’ wholly-owned subsidiary TMS Software Sdn Bhd (TMSS) on the proposal for the project involving a management system for the Education Ministry’s Perluasan Sistem Pengurusan Sekolah to all schools nationwide.
No date has been fixed for the proposal submission or any timeframe set for the ministry to revert on the outcome of the proposal. On the estimated value of the project and profit-sharing or profit margin arrangement between both parties, Theta said the details were still being discussed.
Since KJSB has only started working with TMS on the preparation of the proposal, the expected financing requirements and/or sources of funding for the project and subcontract agreement have yet to be finalised.
Theta, which is a member of Lembaga Tabung Haji, also clarified that no deposit, performance bond or tender fee had been paid.
KJSB will act as the lead party in submitting the proposal, handling correspondences with the Government and securing the prime contract. The company will also provide technical manpower including computer systems analysts.
Under the teaming agreement, KJSB will have to consult TMSS and include its services in the preparation of the proposal. TMSS, on the other hand, is the sub-contractor supporting KJSB’s roles in obtaining and promoting the government-linked project.
Theta also noted that the general risks involved in the project would be the ministry reducing or enlarging the scope or number of the schools considered and KJSB or TMSS failing to fulfill the criteria stipulated under the prime contract or sub-contract.
If KJSB secured the project, there should be a material impact on the earnings per share, gearing and net assets per share of Theta. There is no expected impact on the shareholdings and share capital of the company. However, this is preliminary as the matter is still at the proposal stage.
The targeted implementation for the project of between three and five years for 10,000 schools had yet to be finalised. Since the actual award and scope is not out, it is unable to assess the actual financing requirements at this stage and if required, may be considering a combination of funding from KJSB or Tabung Haji Group, banking facilities or raising capital from the market.
The teaming agreement is valid for a year from Jan 18 2012 and can be extended on six-month basis subsequently.
KJSB’s main business revolves around sales and maintenance of computers and telecommunications equipment, peripherals and related services. TMS, on the other hand, successfully implemented the pilot project for 88 schools and now has the technical knowledge, experience, software resources and necessary expertise for the same area.
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