General Announcement for PLC

30/05/2022

OTHERS NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - LETTER OF INTENT TO NESTCON INFRA SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

NESTCON BERHAD

Type Announcement
Subject OTHERS
Description 
NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - LETTER OF INTENT TO NESTCON INFRA SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
 
1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that its wholly-owned subsidiary, Nestcon Infra Sdn. Bhd. (“Nestcon Infra”), has on 30 May 2022 received and accepted the Letter of Intent dated 30 May 2022 (“LOI”) from Euro Saga Sdn. Bhd. (“Euro”) to undertake civil and associated works (“Subcontract Works”) for the Nenggiri Hydroelectric Project.

2. INFORMATION ON EURO

Euro was incorporated in Malaysia as a private company limited by shares and having its business address at 16-11, Menara K1, Lorong 3/137C, Off Jalan Klang Lama, 58000 Kuala Lumpur, Wilayah Persekutuan.

Euro is principally a civil and building contractor.

3. SALIENT TERMS OF THE LOI

(a) The total provisional sum for the Subcontract Works is RM91,183,810.96 (Ringgit Malaysia: Ninety One Million One Hundred Eighty Three Thousand Eight Hundred Ten and Cents Ninety Six) only.

(b) A contract for the Subcontract Works will be executed in due course between Nestcon Infra, Euro, Principal Contractor (Euro Saga-LLC Infra Sdn. Bhd. Consortium), the Engineer (SMEC-TEPSCO-SMEC Malaysia Consortium (STSC)) and the Client (TNBPG Hydro Nenggiri Sdn. Bhd).

4. FINANCIAL EFFECTS 

The acceptance of the LOI by Nestcon Infra will have no effect on the share capital of the Company and is expected to contribute positively to the net assets and earnings of the Company for the financial year ending 31 December 2022 and throughout the duration of the Subcontract Works.

5. RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the Subcontract Works. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.

6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders of Nestcon and/or persons connected with them has any interests, direct or indirect, in the Subcontract Works.

7. STATEMENT BY THE BOARD OF DIRECTORS

The Board is of the opinion that the Subcontract Works is within the ordinary course of business of Nestcon and the acceptance of the LOI is in the best interest of the Company.

This announcement is dated 30 May 2022.



Announcement Info

Company Name NESTCON BERHAD
Stock Name NESTCON
Date Announced 30 May 2022
Category General Announcement for PLC
Reference Number GA1-27052022-00067


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