Microlink to get legal advice after Bank Rakyat cancels LoI

PETALING JAYA: Microlink Solutions Bhd yesterday said it intends to seek legal advice after Bank Kerjasama Rakyat Malaysia Bhd cancelled a nonbinding letter of intent (LoI) in relation to its existing Core Banking System.

The LoI, which was issued to Microlink on July 14, 2016, invited the company to participate in detailed discussions relating to the improvement and enhancement of Bank Rakyat’s existing Core Banking System and to finalise the project cost, scope of work and timeline. The LoI did not specify the project value and period.

The LoI stated that it was nonbinding in nature and should not be construed as an offer made by or from Bank Rakyat.

Microlink said in a filing with Bursa Malaysia it received a letter dated Jan 5, 2018 from Bank Rakyat on the cancellation.

The letter thanked the company for attending the discussions and for providing its proposals on the project but advised that it would not be pursuing the discussions further with the company due to a change in project requirements and specifications.

“The company intends to seek all advice, including but not limited to legal advice, on this matter,” Microlink said.

On Bursa Malaysia yesterday, Microlink fell 2.86% to close at 68 sen with 15,000 shares done.