1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Builders Sdn. Bhd. (“Nestcon Builders”), a wholly-owned subsidiary of the Company, had on 2 January 2024 accepted the letter of award dated 2 January 2024 (“LOA”) awarded by Altimas Sdn. Bhd. (“Altimas”) for undertaking the main building works for the proposed mixed development of parcel 2, 1 block of 30-storey apartment suite (408 units) and 1 block of 34-storey apartment suite (526 units) comprising of the amenities, car parks and shops to be erected on the lands under Lots 33833 to 33889, Lots 33906 to 33956, Lots 33973 to 34016, Lots 34025 to 34055, Lots 101716 and Lots 101734, Taman Kuchai Jaya, Mukim Petaling, Kuala Lumpur (“the Contract Works”).

2. INFORMATION ON NESTCON BUILDERS

Nestcon Builders was incorporated in Malaysia as a private company limited by shares having its registered address at No. 7-1, Jalan 109F, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, and it is a wholly-owned subsidiary of the Company.

The nature of business of Nestcon Builders is principally involved in construction works.

3. INFORMATION ON ALTIMAS

Altimas was incorporated in Malaysia as a private company limited by shares and having its business address at No. 1, Jalan Kuchai Maju 9, Kuchai Entrepreneurs Park, Kuala Lumpur, 58200 Wilayah Persekutuan Kuala Lumpur. The nature of business of Altimas is property development.

4. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM251,500,000.00 (Ringgit Malaysia Two Hundred Fifty One Million And Five Hundred Thousand Only) (“the Contract Sum”).

(b) The date of commencement of the Contract Works shall be 3 January 2024. 

(c) The overall completion for the Contract Works is within Thirty-Four (34) months and the completion of the Contract Works date shall be on 2 November 2026 or within such extended date of the conditions of contract provides.

(d) The defect liability period of the Contract Works shall be Twenty-Four (24) months from the Date of the Certificate of Practical Completion.

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

5. 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.

6. RISK FACTORS

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

7. APPROVAL REQUIRED

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

8. 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.

9. 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 2 January 2024.