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 24 February 2025 accepted the letter of award dated 19 February 2025 (“LOA”) from ST Dynamo DC Sdn. Bhd. (“STDC”) in respect of the infrastructure works on Plot 4A, Edupark West, PTD No 213429 (HSD 598990) Mukim Pulai, Daerah Johor Bahru, Johor Darul Ta’zim (“the Project”).

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 STDC

STDC was incorporated in Malaysia as a private company limited by shares having its registered address at The Office of Skrine, Level 8, Wisma UOA Damansara, Jalan Dungun, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

The nature of business of STDC is principally involved in providing infrastructure of hosting, data processing services and related activities, and wireless telecommunication services.

4. DETAILS OF THE LOA

(a) The contract sum for the Project is RM57,996,155.70 (Ringgit Malaysia: Fifty-Seven Million Nine Hundred Ninety-Six Thousand One Hundred Fifty-Five and Cents Seventy Only).
(b) The date of commencement shall be 24 February 2025 and the completion date shall be 25 September 2025 or within such extended date of the conditions of contract provides.
(c) The defect liability period shall be twelve (12) months from the date of Handover Certificate.
(d) NISB shall carry the Project 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 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 LOA and/or the Project. 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 Project.

9. STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the LOA and the Project, is of the opinion that the LOA and the Project 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 24 February 2025.