| Type | Announcement |
| Subject | DiGi.Com Berhad ("DiGi" or "Company") - MOBILE VIRTUAL NETWORK OPERATOR ROAMING AGREEMENT (“MVNO Agreement”) BETWEEN DiGi TELECOMMUNICATIONS SDN BHD (“DiGi Tel”) AND BARAKA TELECOM SDN BHD (“Baraka”) |
| Contents | 1) Introduction The Board of Directors of DiGi.Com Berhad (“DiGi” or the “Company”) wishes to announce that its wholly-owned subsidiary, DiGi Tel had on 21 May 2009 entered into an MVNO Agreement with Baraka giving Baraka access to DiGi Tel’s nationwide GSM network for the provision of mobile telecommunications services in Malaysia under Baraka’s own brand. 2) Salient terms of the MVNO Agreement The MVNO Agreement provides for Baraka to offer mobile telecommunications services for voice, short messaging service and data services to its customers via DiGi Tel’s extensive GSM network in Malaysia and includes future negotiations on integration of additional services, such as, but not limited to 3G related services. The MVNO Agreement shall remain in full force for three (3) years from commercial launch and may be further renewed for a period of two (2) years subject to the terms and conditions to be mutually agreed upon. 3) Information on Baraka Baraka is a private limited company incorporated in Malaysia on 3 April 2008 with an authorised and paid-up share capital of RM10.0 million, majority owned by foreign individuals from the Middle East. Baraka aims to establish and operate as a mobile virtual network operator (“MVNO”) to offer mobile telecommunications services in Malaysia. 4) Rationale The MVNO agreement is expected to enhance and extend DiGi Tel’s abilities to reach out to different market segments through Baraka’s own branded innovative mobile telecommunications services and offerings. It also reflects DiGi’s commitment to the government objectives to foster healthy competition in the telecommunications industry and to bring benefit to the end users eventually. 5) Approval of Shareholders and Authorities The MVNO Agreement is not subject to the approval of the shareholders of DiGi. However, the MVNO Agreement is conditional upon Baraka first obtaining all relevant licences and approval from Suruhanjaya Komunikasi dan Multimedia Malaysia (SKMM) and/or from other authorities as deemed necessary for Baraka to operate as an MVNO in Malaysia. 6) Financial Effects The MVNO Agreement does not have any effect on the issued and paid-up share capital of DiGi and is not expected to have any material effect on the earnings, gearings and net assets of the DiGi Group for the financial year ending 31 December 2009. 7) Directors’ And Major/Substantial Shareholders’ Interest None of the directors and major shareholders of DiGi and/or persons connected to them have any interest direct and/or indirect in the MVNO Agreement. 8) Directors’ Opinion The Board of DiGi is of the opinion that the MVNO Agreement is in the best interest of DiGi Group. This announcement is dated 21 May 2009. |
| Company Name | DIGI.COM BERHAD |
| Stock Name | DIGI |
| Date Announced | 21 May 2009 |
| Category | General Announcement |
| Reference No | CC-090504-73674 |
