1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that its wholly-owned subsidiary, Nestcon Builders had on 21 February 2023 accepted the letter of award dated 21 February 2023 (“LOA”) awarded by Solaris Ceria Sdn. Bhd. (“Solaris Ceria”) in respect of the main building works for the construction of 1 block of 52-storey office suites and serviced apartments comprising of recreational facilities, podium car park, food and beverages to be erected on the lands held under Lot PT 25944 (Lot 81433), Jalan Duta Kiara, Mont Kiara, Mukim Batu, Daerah Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur (“Contract Works”).

2. INFORMATION ON SOLARIS CERIA

Solaris Ceria was incorporated in Malaysia as a private company limited by shares and having its business address at Unit 106, Block E, Phileo Damansara 1, No. 9, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor Darul Ehsan.

Solaris Ceria is principally involved in property development.

3. DETAILS OF THE LOA

The contract sum for the Contract Works is RM153,997,550.00 (Ringgit Malaysia One Hundred Fifty-Three Million Nine Hundred Ninety-Seven Thousand Five Hundred Fifty Only).

The overall completion for the Contract Works is within Thirty-Six (36) months inclusive of the mobilisation, demobilisation, all festival and public holidays and is expected to be completed on or before 28 February 2026.

The defect liability period of the Contract Works shall be Twenty-Seven (27) months from the date of the Certificate of Practical Completion.

Nestcon Builders shall carry the Contract Works in accordance with the other supplementary terms and conditions set out in the LOA.

4. FINANCIAL EFFECTS

The acceptance of the LOA by Nestcon Builders to undertake the Contract Works is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company throughout the duration of the Contract Works.

5. RISK FACTORS

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

6. APPROVAL REQUIRED

The acceptance of the LOA is not subject to the approval from the Company’s shareholders’ and/or any regulatory authorities.

7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S INTERESTS

None of the Directors and/or major shareholders of Nestcon or persons connected with them has any interests, direct or indirect, in the LOA and/or the Contract Works.

8. STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the LOA and the Contract Works, is of the opinion that the LOA and the Contract Works are within the ordinary course of business of Nestcon and the acceptance of the LOA is in the best interest of the Company.

This announcement is dated 21 February 2023.