For consistency purposes, the abbreviations and definitions used throughout this announcement is the same as those previously defined in the Company's announcement made on 11 May 2022 in relation to the LOA awarded by Greenverse for undertaking the design, construction, completion and installation of the integrated offsite scheduled wastes recovery facility on part of Lot 4A, B and C, Phase 3 in Lot Q, Kerteh Biopolymer Park (KBP), Mukim Kertih, Daerah Kemaman, Terengganu Darul Iman (“Announcement”).

1. INTRODUCTION

Nestcon Builders had on 11 May 2022 accepted the letter of award dated 11 May 2022 (“LOA”) awarded by Greenverse for undertaking the design, construction, completion and installation of the integrated offsite scheduled wastes recovery facility on part of Lot 4A, B and C, Phase 3 in Lot Q, Kerteh Biopolymer Park (KBP), Mukim Kertih, Daerah Kemaman, Terengganu Darul Iman (“Project”).

On 21 February 2023, Nestcon Builders had delivered the letter of mutual termination of contract (“Termination Notice”) to Greenverse confirming mutual agreement to terminate the contract due to the possession of the site for the construction of the works which has yet to be granted in view of the increased in the price of construction materials required for the completion of the Project.

The Board of Nestcon wishes to announce that an amicable decision has been reached between Nestcon Builders and Greenverse to mutually agree to terminate the LOA subject to the terms and conditions contained in the LOA and Termination Notice as agreed between both Parties.

2. RATIONALE FOR THE TERMINATION OF THE LOA

The mutual agreement on the termination of LOA is due to the possession of the site for the construction of the works which has yet to be granted in view of the increased in the price of construction materials required for the completion of the Project.

3. EFFECTS OF THE TERMINATION OF THE LOA

The termination of the LOA is not expected to have any material effect on the net assets, gearing, earnings and earnings per share of the Company for the financial year ending 31 December 2023.

There is no cost incurred by Nestcon Builders from the LOA and/or Project.

4. STATEMENT BY THE BOARD OF DIRECTORS

The Board, having considered all aspects of the mutual termination is of the opinion that the mutual termination is in the best interest of the Company.

This announcement is dated 21 February 2023.