Unless otherwise defined, all terms used herein shall have the same meanings referred to in the announcement on 30 May 2022 pertaining to Nestcon Infra who received and accepted the LOI dated 30 May 2022 from Euro to undertake Subcontract Works for the Project.

1.       INTRODUCTION

The Board wishes to announce that Nestcon Infra, had on 6 October 2022 accepted the Letter of Award (“LOA”) from Euro Saga Sdn. Bhd. (“Euro” or “the Main Subcontractor”) appointing Nestcon Infra as the subcontractor for the Project (“the Appointment” or “Subcontract”).

2.       DETAILS OF THE APPOINTMENT AND LOA 

(a) The total provisional sum of RM91,183,810.96 shall be claimable by and payable to Nestcon Infra on progressive claim based on the work done.

(b) The date of commencement of the Subcontract Works was on 30 May 2022 or the date of acceptance of the LOI.

(c) The expected completion date for the construction works is by 25 April 2026.

(d) The Main Subcontractor may upon notice to Nestcon Infra to terminate immediately the engagement of Nestcon Infra in the execution and performance of the Subcontract Works in the event:
● Nestcon Infra fails to commence the Subcontract Works or Nestcon Infra suspends or abandons the carrying out of the whole or section or sections of the Subcontract Works or repudiated the Subcontract; or
● Nestcon Infra fails to proceed regularly and diligently with the Subcontract Works which in the sole opinion of the Main Contractor namely LLC Infra Sdn. Bhd. and the Main Subcontractor, the Subcontract Works may not be completed by or before the date for completion or by such date extended in accordance with the provisions of the Subcontract; or
● Nestcon Infra is in default of any law or in default or in breach of any of the Terms and Conditions of the Subcontract; or
● The performance of the Subcontract Works is in jeopardy due to reasons beyond the control of any party involved in the Project.

(e) The Defect Liability Period shall be from the date of Practical Completion of the Subcontract Works up to:-
● Twelve (12) months from the date of Practical Completion of the Main Contract; or
● The dates of Main Contract Certificates of Making Goods which includes the Subcontract Works, whichever is later. 

3.       FINANCIAL EFFECTS 

(a) The Contract will not have any effect on the issued share capital and the shareholding of the substantial shareholders of Nestcon.

(b) The acceptance of the LOA by Nestcon Infra is expected to contribute positively to the earnings and net assets of the Company throughout the duration of the Project, and  is not expected to have any and/or will not have any material effect on the gearing of the Company.

4.       RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the LOA and/or Project. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.

5.       DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHARHOLDER’S INTERESTS 

None of the Directors and/or major shareholders of Nestcon or persons connected to them has any interests, direct or indirect, in the Subcontract.

6.       STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the Appointment and the Subcontract, is of the opinion that the Subcontract is in the best interest of the Company.


This announcement is dated 6 October 2022.