ARB subsidiaries terminate MoUs for IT projects

KUALA LUMPUR (Dec 24): ARB Bhd subsidiaries had today terminated two memorandums of understanding (MoUs) for planned IT projects in Cambodia due to the inability to finalise terms of the proposed collaborations.

In Bursa Malaysia filings today, ARB Bhd said its wholly-owned subsidiary Arbiot Sdn Bhd terminated its MoU with Chean Chhoeng Thai Group Co Ltd (CCTG). ARB Bhd said another wholly-owned subsidiary ARB Development Sdn Bhd terminated its MoU with HK Yue Tai Life Insurance PLC (HKYT).

ARB Bhd said the MoUs were signed on July 10 this year. On the Arbiot-CCTG MoU, ARB Bhd said today the parties have been unable to agree on and finalise the terms of the potential collaboration.

"The termination would enable the company (ARB Bhd) to focus on its existing operations as well as to pursue other opportunities. Notwithstanding the termination, the group continues to explore other business opportunities in the Southeast Asia region," ARB Bhd said.

On the ARB Development-HKYT MoU, ARB Bhd said the termination would enable ARB Bhd to focus on its existing operations and pursue other opportunities since the parties to the MoU do not foresee the finalisation of the terms of collaboration within the validity period of the MoU.

"Notwithstanding the termination, the group (ARB Bhd) would still look forward (to) collaborat[ing] with HKYT in the future," ARB Bhd said.

In ARB Bhd's July 10 Bursa filings, ARB Bhd said the Arbiot-CCTG MoU aimed to explore the proposed collaboration in Internet of Things (IoT) solutions and IT-related hardware and software.

"The objective of the MoU is to express that both Arbiot and CCTG had common interest in collaborating together to implement IoT-related business in a development project in Phnom Penh, Cambodia," ARB Bhd said.

Meanwhile, the MoU signed with HKYT was intended to explore the potential collaboration in enterprise resource planning (ERP) system and IT-related hardware and software for HKYT's operations in Cambodia, according to ARB Bhd.

"The objective of the MoU is to express that both ARB Development and HKYT had common interest in collaborating together to implement the ERP and IT system and solutions in insurance operations of HKYT in Cambodia," ARB Bhd said.

At Bursa today, ARB Bhd shares were traded unchanged at 31 sen at 3:15pm for a market value of RM87.93 million. ARB Bhd saw 1.61 million shares traded.