KUALA LUMPUR (Aug 22): PRIVASIA Technology Bhd has entered into an IT network, security and internet outsourcing and managed services contract with Westports Malaysia Sdn Bhd worth RM20.65 million.
Under the five-year contract, the group said its wholly-owned subsidiary PRIVASIA Sdn Bhd (PSB) will be responsible for the purchase of new equipment necessary to provide the service.
“Subject to the change control procedures, PSB shall increase or decrease the amount of the services according to Westports’ demand for the services as agreed between Westports and PSB, which may necessitate an adjustment in the charges,” PRIVASIA Technology said in a bourse filing on Tuesday (Aug 22).
The group said the contract, which commenced on April 1, was in force upon the execution and delivery of the corporate guarantee on Tuesday.
PRIVASIA Technology also said it expects the contract to contribute positively towards the earnings of the group until the expiry of the contract.
“The company does not foresee any exceptional risks other than execution risks, political risks, pandemic risks and country risks associated with the contract,” it added.
The share price of PRIVASIA Technology closed unchanged at 10 sen on Tuesday, bringing the group a market capitalisation of RM58.61 million.