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 23 December 2024 received the letter of notification dated 19 December 2024 (“LON”) from Energy Commission of Sabah (“ECOS”) on the development of large-scale solar photovoltaic plant (“LSSPV”) of 4.00 MWa.c. at Sri Tanjong, Tawau, Sabah (“the Project”).
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 nature of business of Nestcon Infra is principally involved in investment holding, construction works and transportation.
3. DETAILS OF THE LON
(i) The LSSPV is a period of 25 (twenty-five) years of the Power Purchase Agreement (“PPA”);
(ii) The commercial operation date shall not be later than 30 November 2026; and
(iii) The Project is to meet certain timeline requirements, including the timing of executing the PPA, the timing of achieving the Financial Close as well as the submission of a commitment bond to ECOS in relation to the Project.
4. SOURCE OF FUND
Nestcon plans to finance the Project through internally generated funds and/or bank borrowings.
5. FINANCIAL EFFECTS
The acceptance of the LON by Nestcon Infra to undertake the Project is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company throughout the duration of the Project.
6. RISK FACTORS
The Company does not foresee any exceptional risk other than the normal operational risks associated with the LON 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 LON 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 LON and/or the Project.
9. STATEMENT BY THE BOARD OF DIRECTORS
The Board, after having considered all aspects of the LON and the Project, is of the opinion that the LON and the Project are within the ordinary course of business of Nestcon and the acceptance of the LON is in the best interest of the Company.
This announcement is dated 24 December 2024.