1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Builders Sdn. Bhd. (“Nestcon Builders”), a wholly-owned subsidiary of the Company, had on 18 June 2024 accepted the letter of award dated 18 June 2024 (“LOA”) awarded by Sunrise Charm Sdn. Bhd. (“Sunrise Charm”) for undertaking the construction and completion of a 45-storey mixed commercial development comprising of strata office (172 units), serviced apartments (98 units), carparks and other relevant facilities on Lot 212, Jalan Mayang, Seksyen 43, Wilayah Persekutuan Kuala Lumpur (“the Contract Works”).

2. INFORMATION ON NESTCON BUILDERS

Nestcon Builders was incorporated in Malaysia as a private company limited by shares having its registered address at No. 7-1, Jalan 109F, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

The nature of business of Nestcon Builders is principally involved in construction works.

3. INFORMATION ON SUNRISE CHARM

Sunrise Charm 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 nature of business of Sunrise Charm is property developer.

4. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM103,500,000.00 (Ringgit Malaysia: One Hundred Three Million Five Hundred Thousand Only) (“the Contract Sum”).
(b) The date of commencement shall be notified by supplementary agreement.
(c) The overall completion for the Contract Works is within Forty-Four (44) months commencing from the date of commencement or within such extended time as provided by the conditions of contract.
(d) The defect liability period shall be Twenty-Seven (27) months from the date of Certificate of Practical Completion of the Contract Works or until all defect are made good whichever is the later.
(e) Nestcon Builders 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 Builders 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 18 June 2024.