1. INTRODUCTION

The Board of Directors of Nestcon ("the Board") wishes to announce that Nestcon Infra Sdn. Bhd. ("NISB"), a wholly-owned subsidiary of the Company, had on 7 January 2025 accepted the letter of award dated 6 January 2025 (“LOA”) awarded by Senai Airport City Sdn. Bhd. ("SACSB") for the Phase 3 of the Construction and Completion of Earthworks and Erosion & Sedimentation Control Plan on part of Lot PTD 105258, PTD 175317, PTD 175318 and PTD 105147 ("the Contract Works").

NISB has been appointed as the contractor to continue with the earthworks for Senai Airport City’s industrial development expansion with the launch of its Phase 3 measuring approximately 300 acres in Johor to provide investors with industrial plots ready with platform and corresponding infrastructure.

2. INFORMATION ON NISB

NISB 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 NISB is principally involved in investment holding, construction works and transportation.

3. INFORMATION ON SACSB

SACSB was incorporated in Malaysia as a private company limited by shares and having its business address at No. 34 & 34A, Jalan Ekoperniagaan 1, Taman Ekoperniagaan 2, Senai Airport City, 81400 Senai, Johor.

The nature of business of SACSB is property owner and developer.

4. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM25,012,043.20 (Ringgit Malaysia: Twenty-Five Million Twelve Thousand Forty-Three and Cents Twenty Only).
(b) The date of commencement shall be 13 January 2025 ("Date of Commencement").
(c) The overall completion for the Contract Works is within eighteen (18) months from the Date of Commencement and the completion date shall be 12 July 2026 or within such extended date of the conditions of contract provides.
(d) The defect liability period shall be twelve (12) months from the date of the Certificate of Practical Completion of the Contract Works.
(e) NISB 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 NISB 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 7 January 2025.