1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that its wholly-owned subsidiary, Nestcon Builders had on 26 May 2023 accepted the letter of award dated 26 May 2023 (“LOA”) awarded by Nescaya Etika Sdn. Bhd. (“Nescaya Etika”) in respect of the main building and infrastructural works for the construction and completion of phase 2, 1 block of 40-storey condominium (637 units) comprising of the main lobby, amenities and car park to be erected on part of Lot 481675 (formerly PT 9721), Jalan 1/112E, Mukim Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur (“Contract Works”).

2. INFORMATION ON NESCAYA ETIKA 

Nescaya Etika was incorporated in Malaysia as a private company limited by shares and having its business address at Lot 6, 2-6, Tiara Mutiara, Jalan Puchong, 58200 Puchong, Kuala Lumpur.

Nescaya Etika is principally involved in project management.

3. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM190,000,000.00 (Ringgit Malaysia One Hundred Ninety Million Only).

(b) The overall completion for the Contract Works is within Twenty-Eight (28) months inclusive of the mobilisation, all festival and public holidays and the date of site possession shall be 1 June 2023 and is expected to be completed on 30 September 2025.

(c) The defect liability period of the Contract Works shall be Twenty-Four (24) months upon the issued date of Certificate of Practical Completion.

(d) 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 26 May 2023.