KUALA LUMPUR: Seni Jaya Corporation Bhd
’s indirect 70 per cent-owned subsidiary, SJX Media Sdn Bhd, has secured a seven-year advertising media concession for the Johor Bahru-Singapore Rapid Transit System (RTS) Link.
In a filing with Bursa Malaysia today, Seni Jaya said SJX Media has entered into an advertising concession agreement (ACA) with Malaysia Rapid Transit System Sdn Bhd (MRTS) for the design, build, operation and transfer of advertising media for the rail project.
Under the agreement, MRTS will grant SJX Media exclusive rights to undertake the design, procurement, manufacture, installation, testing, commissioning, operation, maintenance and transfer of advertising media at designated advertising spaces within the RTS Link project.
"SJX Media shall also be responsible for the marketing, management, operation, maintenance, sale, display and commercial exploitation of advertising spaces and advertising activities throughout the concession period or any renewal term, at its own cost and risk,” the company said.
The concession will run for seven years from the commencement date and may be renewed for a further three years at the sole discretion of MRTS, it said.
Seni Jaya said the ACA is expected to contribute positively to the company’s future earnings, earnings per share, net assets per share and gearing. It will not affect its share capital or the shareholdings of its substantial shareholders.
Seni Jaya said its board is unaware of any risks that may arise from the agreement apart from operational risks.
None of the company’s directors, major shareholders or persons connected to them have any direct or indirect interest in the acceptance of the ACA, the filing said.
"The board of directors of Seni Jaya, after due consideration of all aspects of the ACA, is of the opinion that the acceptance of the ACA is in the best interest of the company,” Seni Jaya added. - Bernama
