REDtone International Bhd is offering broadband and information technology (IT) services via a collaboration with eB Capital Bhd.
It said on Dec 19 both companies would share infrastructure, marketing, technical support and customer care support services to create synergies between their respective businesses.
The venture was for seven years from Dec 19 and automatically be renewed for an additional five years. Both parties could terminate the collaboration at any time if they breached any of the terms or conditions.
REDtone said the collaboration was deemed a recurrent related party transaction as it owned 11.56% of eB Capital.
It added the collaboration was not expected to have a material effect on its financial performance for the year ending May 31, 2007 as it expected only minimum contribution for the first six months. However, it expected positive contribution to its future earnings.-TheEdgeDaily