Reference is made to Nestcon Berhad's (“the Company” or “Nestcon”) announcement dated 16 August 2024 and Bursa Malaysia Securities Berhad's query letter dated 19 August 2024 (Reference Number :IQL-19082024-00002).
The Board of Directors (“Board”) of the Company hereby furnishes the following additional information for public release:-
1. Whether NESTCON INFRA is a major subsidiary of NESTCON BERHAD (“NESTCON”).
Nestcon Infra Sdn. Bhd. (“Nestcon Infra”) is not a major subsidiary of Nestcon.
2. The financial and operational impact on NESTCON group arising from the Writ and Statement of Claim.
(i) Financial impact
The Board of the Company wishes to inform that the Plaintiff is seeking an injunction, general damages, exemplary or aggravated damages, indemnity, and special damages of RM1,825,288.20 against Nestcon Infra, and other defendant. It should be noted that general damages, exemplary or aggravated damages, indemnity, and special damages of RM1,825,288.20 are to be assessed before the Honourable Court. After assessing the potential liability to the Company and its subsidiaries (“Nestcon Group”), the Board concludes that the financial impact to the Company will be limited to the legal costs and the amount awarded by the Honourable Court. However, Nestcon Infra believes it has a good defence against the claims, and any potential losses thereof are not expected to be significant to Nestcon Group.
(ii) Operation impact
The suit is not expected to have any operational impact on Nestcon Group. Nestcon Infra completed its works for the project in question on 12 December 2018, and the Certificate of Practical Completion (CPC) was issued on the same day.
3. The interest rate on the amount claimed for.
Based on the Writ and Statement of Claim both dated 25 July 2024, no interest rate has been mentioned on the claimed amount.
This announcement is dated 20 August 2024.