OTHERS NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - LETTER OF AWARD FROM SERIEMAS DEVELOPMENT SDN. BERHAD TO NESTCON INFRA SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

NESTCON BERHAD

Type Announcement
Subject OTHERS
Description
NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - LETTER OF AWARD FROM SERIEMAS DEVELOPMENT SDN. BERHAD TO NESTCON INFRA SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Infra Sdn. Bhd. (“Nestcon Infra”), a wholly-owned subsidiary of the Company, had on 6 June 2024 accepted the letter of award dated 6 June 2024 (“LOA”) awarded by Seriemas Development Sdn. Berhad (“Seriemas Development”) for undertaking the construction and completion of proposed earthworks, soil improvement works and other associated works for remaining works for package 4-2 for proposed development in Kota Seri Langat, Mukim Tanjung Dua Belas, Daerah Kuala Langat, Selangor Darul Ehsan (“the Contract Works”).

2. INFORMATION ON NESTCON INFRA

Nestcon Infra 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 Infra is principally involved in construction works.

3. INFORMATION ON SERIEMAS DEVELOPMENT

Seriemas Development was incorporated in Malaysia as a private company limited by shares and having its business address at No. 1, Persiaran Impian Perdana, Saujana Impian, 43000 Kajang, Selangor Darul Ehsan.

The nature of business of Seriemas Development is property development.

4. DETAILS OF THE LOA 

(a) The contract sum for the Contract Works is RM37,700,000.00 (Ringgit Malaysia Thirty-Seven Million Seven Hundred Thousand Only) (“the Contract Sum”).
(b) The date of commencement shall be 11 June 2024 (“Date of Commencement”).
(c) The completion period for the Contract Works shall be ten (10) months commencing from the Date of Commencement and shall be completed on 10 April 2025.
(d) The defect liability period shall be twelve (12) months from the date of the Certificate of Practical Completion of the Contract Works.
(e) Nestcon Infra 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 Infra 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 6 June 2024.





Announcement Info

Company Name NESTCON BERHAD
Stock Name NESTCON
Date Announced 06 Jun 2024
Category General Announcement for PLC
Reference Number GA1-06062024-00056