ACE Market-listed TFP Solutions Bhd will participate in a nationwide rollout of the Nationwide Fibre-to-Home (FTTH) with 5G-enabling transport project which boasts an estimated value of RM2.75 bil in gross enterprise value via a special purpose vehicle (SPV).
Towards that end, the group via its 75%-owned subsidiary Jejak Semangat Sdn Bhd has today signed a memorandum of understanding (MOU) with Landasan Salam Sdn Bhd to undertake the project which initial phase will commence in Langkawi.
Landasan Salam is a SPV that will undertake the Nationwide FTTH with 5G-enabling transport project with the connectivity backhaul provided by Allo Carrier Network Services which is operated by Allo Technology Sdn Bhd, a subsidiary of Tenaga Nasional Bhd.
Valued at RM200 mil, the initial phase of the FTTH project will see project design and construction works completed in two to three years.
Upon the project’s completion, TFP and its partner will see a recurring revenue of around RM20 mil annually for 20 years or RM400 mil in total during that period for operation, maintenance, and supervision of services provided.
According to TFP’s managing director Datuk Hussian @ Rizal A. Rahman, the Nationwide FTTH with 5G-enabling transport project will expand the potential of high-speed broadband Internet access of to 10Gbps (gigabits per second) symmetrical connection speed as well as 5G deployments in rural areas.
“Our expertise in the IT business together with our capacity to fund the operating cost for the project gives us an edge over our competition,” he pointed out. “The involvement in this project will open up the potential for recurring and sustainable earnings growth going forward for the group.”
On top of the RM200 mil for the design and construction of the project, the first phase project in Langkawi will also enable TFP to maintain a sustainable and recurring revenue.
A filing with Bursa Malaysia today shows that Landasan Salam is working alongside Allo Technology to undertake the nationwide rollout of the project for Nationwide FTTH with 5G-enabling transport with the initial phase to commence in Langkawi within six months from July 1.
The partnership entails the planning, financing, implementation, and operation of the project for Nationwide FTTH with 5G-enabling transport over a 20-year extendable concession period.
While Jejak Semangat will act as a project management company, TFP will provide assistance and support for the project implementation as well as operating funds of not less than RM3 mil.
With a strong balance sheet and its access to various funding opportunities as well as the know-how in the IT business, TFP is in a good position to provide the perfect synergy to Landasan Salam, added Hussian.
At the close of today’s mid-day trading, TFP was unchanged at 23 sen with 22.51 million shares traded, thus valuing the company at RM122 mil. – Aug 30, 2021
