Teliti International Ltd Update on Datacentre, Director Change & Suspension (5912H)

TIDMTEL

RNS Number : 5912H

Teliti International Ltd

21 June 2013

Teliti International Limited

("Teliti" or the "Group")

Update on the Datacentre

Resignation of the Non-Executive Directors

Suspension of Trading on AIM

The Group announces that, contrary to expectations expressed at the time of its final results in March, the Board has not been able to secure the required funding by the end of June 2013. As a consequence, the work required to complete Phase 1 of the datacentre will not commence in time for it to begin generating revenues in this calendar year and it now unlikely that the datacentre will commence operations before the middle of 2014.

The funding required to complete the datacentre and bring the first three rooms into operation (Phase 1) is approximately RM154m, of which approximately RM113m has already been spent and is included in the Group's balance sheet, under creditors, and the balance of RM41m relates to work still to be carried out. Post the completion of Phase 1, further work will then be required to bring the other 13 rooms into operation (Phase 2).

The Group has secured funding of approximately RM65m leaving a funding gap of RM89m in relation to Phase 1. However, this RM65m can only be accessed once the building has achieved its certificate of completion and compliance ("CCC"), for which RM44m of work needs to be paid for.

The delay to the data centre and the increased costs, especially in terms of accrued interest during the elongated construction time, has seriously constrained the Group's cash flows. The Board is in discussions with a number of parties in respect of the immediate funding requirement of RM44m to achieve CCC, the additional RM45m to complete Phase 1 and then the subsequent funding for Phase 2. It had been anticipated that one of the proposals would have completed by the end of June 2013, however the Board now believes that it could be a further two months before a resolution is achieved.

The funding proposals currently being considered by the Board include the disposal of part, or possibly all, of the data centre, which would require shareholder approval. The Board recognises that such a radical step would be disappointing for all shareholders as the data centre represented the main engine of growth for the Group; however, it is a reflection of the seriousness of the situation which the Group currently finds itself in.

The Board also announces that its two non-executive directors, Maurice Keane and Brian Rowbotham, have resigned, effective today.

After discussion with its Nomad, Daniel Stewart, and in consideration of its current situation, the Group has requested that trading in its shares on AIM be suspended until new non-executive directors can be appointed.

For further information please contact:

 
 Teliti International Ltd 
---------------------------------------  -------------------- 
 Hj Mohamed Nasir Abdul Majid, Chief 
  Executive Officer 
  Rosmida Din, Chief Financial Officer    +603 7873 7733 
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 Daniel Stewart and Company plc 
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 Antony Legge, James Felix                +44 (0)20 7776 6550 
---------------------------------------  -------------------- 
 
 Luther Pendragon 
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 Harry Chathli, Claire Norbury            +44 (0)20 7618 9100 
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This information is provided by RNS

The company news service from the London Stock Exchange

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