Digi.Com to pay RM13.86mil to Telenor in settlement agreement

In its filings with Bursa Malaysia, Digi said its wholly owned subsidiary Digi Telecommunications Sdn Bhd (DTSB) had yesterday entered into a settlement deal with Telenor IT Asia Sdn Bhd (TITA) and Telenor Global Shared Services AS (GSS) to exit the MoU and service order for IT infrastructure services signed between the three parties on Nov 7, 2014, and Nov 25, 2016, respectively.

PETALING JAYA: Digi.Com Bhd has agreed to pay a total sum of RM13.86mil to the Telenor group in a settlement agreement to call off a memorandum of understanding (MoU) and service order for information technology (IT) infrastructure services.

In its filings with Bursa Malaysia, Digi said its wholly owned subsidiary Digi Telecommunications Sdn Bhd (DTSB) had yesterday entered into a settlement deal with Telenor IT Asia Sdn Bhd (TITA) and Telenor Global Shared Services AS (GSS) to exit the MoU and service order for IT infrastructure services signed between the three parties on Nov 7, 2014, and Nov 25, 2016, respectively.

“The settlement agreement will enable the parties to reach an amicable solution to resolve challenges on cost level, quality and commercial issues unfolded in current ongoing projects and subsequent running services executed under the MoU and service order, which were unforeseen at the time of entering into the MoU and service order,” Digi said in a statement.

“The final settlement is undertaken following the mutual agreement between DTSB, GSS and TITA to terminate and exit the MoU and service order, and to be discharged from their respective obligations under the MoU and service order in the most beneficial and cost-effective manner,” it added.

Digi said the total settlement sum of RM13.86mil payable by DTSB to TITA would comprise payments for asset transfer, settlement cost and exit fee and termination charges under the MoU and service order.