1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Solar Sdn. Bhd. (“Nestcon Solar”), a subsidiary of the Company, had on 20 June 2024 accepted the letter of award dated 14 June 2024 (“LOA”) awarded by Heliosel Sdn. Bhd. (“Heliosel”) for undertaking the design, engineering, procurement, construction, installation, testing and commissioning (“EPCC”) for the development of Selco Solar Photovoltaic (“PV”) Plant at Sungai Selangor Phase 1 Water Treatment Plant – Package L5 (“the Project”).

2. INFORMATION ON NESTCON SOLAR

Nestcon Solar was incorporated in Malaysia as a private company limited by shares having its registered address at B-5-4, Megan Avenue 1, 189, Jalan Tun Razak, 50400 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

The nature of business of Nestcon Solar is principally engaged in providing consultancy services and construction work in related to solar systems.

3. INFORMATION ON HELIOSEL

Heliosel was incorporated in Malaysia as a private company limited by shares and having its business address at 34-36, Jalan SS22/21, Damansara Jaya, 47400 Petaling Jaya, Selangor Darul Ehsan.

The nature of business of Heliosel is green energy assets developer-owner-operator and innovative solutions provider driving net-zero aspirations.

4. DETAILS OF THE LOA

(a) The contract sum for the Project is RM21,000,000.00 (Ringgit Malaysia: Twenty-One Million Only).
(b) The date of commencement shall be from the date of LOA and the completion date shall be seven (7) months from the date of LOA.
(c) The defect liability period shall be Twenty-Four (24) months from commercial operation date.
(d) Nestcon Solar 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 Nestcon Solar 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 20 June 2024.