1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Borneo Sdn. Bhd. (Formerly known as Nestcon KSJ Ventures Sdn. Bhd.) (“NBSB”), a subsidiary of the Company, had on 13 May 2025 accepted the letter of award dated 9 May 2025 (“LOA”) from Matrix Excelcon Sdn. Bhd. (“MESB”) in respect of the site clearing and earthworks for a proposed mixed development with approximately 1,382 acres at Mukim Labu, Daerah Seremban, Negeri Sembilan Darul Khusus (“Sub-Contract Works”).

2. INFORMATION ON NBSB

NBSB was incorporated in Malaysia as a private company limited by shares having its registered address at No. D-09-02, Level 9, EXSIM Tower, Millerz Square @ Old Klang Road, Megan Legasi, No. 357, Jalan Kelang Lama, 58000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

NBSB is a 51% owned subsidiary of Nestcon Infra Sdn. Bhd., which in turn is a wholly-owned subsidiary of the Company.

NBSB is principally engaged in construction works.

3. INFORMATION ON MESB

MESB was incorporated in Malaysia as a private company limited by shares having its registered address at Wisma Matrix, No. 57, Jalan Tun Dr Ismail, 70200 Seremban, Negeri Sembilan Darul Khusus.

MESB is principally engaged as general contractors.

4. DETAILS OF THE LOA

(a) The sub-contract sum for the Sub-Contract Works is RM44,118,908.00 (Ringgit Malaysia: Forty-Four Million One Hundred Eighteen Thousand Nine Hundred and Eight Only).
(b) The date of commencement shall be 15 May 2025.
(c) The overall completion period for the Sub-Contract Works shall be thirty-two (32) months and the completion date shall be 14 January 2028.
(d) The defects liability period shall be twelve (12) months from the date of Certificate of Practical Completion.
(e) NBSB shall carry the Sub-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 NBSB to undertake the Sub-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 Sub-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 Sub-Contract Works. 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 Sub-Contract Works.

9. STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the LOA and the Sub-Contract Works, is of the opinion that the LOA and the Sub-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 13 May 2025.