1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Builders Sdn. Bhd. (“NBSB”), a wholly-owned subsidiary of the Company, had on 26 March 2025 accepted the letter of award dated 24 March 2025 (“LOA”) from Paramount Property (Cityview) Sdn. Bhd. (“PPSB”) in respect of the construction of  one (1) block of 49-storey and one (1) block of 7-storey condominiums on Lot 263, Seksyen 89A, Jalan Ampang Hilir, Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur (“the 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.

The nature of business of NBSB is principally involved in construction works.

3. INFORMATION ON PPSB

PPSB was incorporated in Malaysia as a private company limited by shares having its registered address at Level 12, Tower B, Pusat Perdagangan Dataran Atwater, Jalan Profesor Diraja Ungku Aziz, 46200 Petaling Jaya, Selangor.

The nature of business of PPSB is principally involved in residential buildings.

4. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM228,300,000.00 (Ringgit Malaysia: Two Hundred Twenty-Eight Million and Three Hundred Thousand Only).
(b) The date of commencement shall be 29 April 2025.
(c) The overall completion for the Contract Works shall be thirty-seven (37) months and the completion date shall be 28 May 2028 or within such extended date of the conditions of contract provides.
(d) The defect liability period shall be twenty-seven (27) months from the date of Certificate of Practical Completion of the Contract Works.
(e) NBSB 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 NBSB 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 26 March 2025.