The Board of Directors of PESTECH wishes to announce that Pestech Sdn. Bhd., a wholly-owned subsidiary of the Company had on 12 July 2012 accepted the Letter of Award from OM Materials (Sarawak) Sdn. Bhd. dated 11 July 2012 in relation to the EPC Work Package for 275 KV Substation for the Ferro Alloy Project in Samalaju, Sarawak. The Award is valued at USD36,100,000.00 and the completion date is targeted on 30 September 2013.
The Award is expected to contribute positively to the earnings and net assets per share of the Group for the financial years ending 31 December 2012 and 31 December 2013.
The Company does not foresee any exceptional risk other than the normal operational risk associated with the Award such as availability and changes in the prices of raw materials. The Company will take the necessary steps to mitigate the risks as and when it occurs.
None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Award.
This announcement is dated 12 July 2012.