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 18 November 2024 accepted the letter of award dated 18 November 2024 (“LOA”) awarded by Mightyprop Sdn. Bhd. (“Mightyprop”) for the rock blasting and other general works in respect of the proposed road and drainage for the proposed development of 20 blocks of office tower, 5 blocks of serviced apartment and soho, 6 blocks of serviced apartment and affordable home, business spaces, hotel, private school, auditorium and other relevant facilities that erected on the lands held under Lots PT 50935 (HSD 321517), PT 51550 (HSD 321459), PT 51551 (HSD 321460), PT 51552 (HSD 321461), PT 50934 (HSD 321516), and PT 84846 (HSD 116648), Jalan PJU 8/8, Damansara Perdana, Mukim Sungai Buloh, Daerah Petaling, 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. 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.

The main business of Nestcon Infra is principally involved in construction works.  

3. INFORMATION ON MIGHTYPROP

Mightyprop was incorporated in Malaysia as a private company limited by shares and having its business address at D-35-01, Level 35, EXSIM Tower, Millerz Square @ Old Klang Road, Megan Legasi, No. 357, Jalan Kelang Lama, 58000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

The main business of Mightyprop is principally involved in housing development. 

4. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM31,614,665.56 (Ringgit Malaysia: Thirty-One Million Six Hundred Fourteen Thousand Six Hundred Sixty-Five and Cents Fifty-Six Only) (“the Contract Sum”).
(b) The date of commencement shall be 15 November 2024 and the overall completion period for the Contract Works shall be twelve (12) months commencing from the date of commencement.
(c) The defects liability period shall be twenty-seven (27) months from the date of issuance of Certificate of Practical Completion.
(d) 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 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 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 18 November 2024.