The Board of Directors of PESTECH wishes to announce that the Company had on 15 April 2021 entered into a Memorandum of Understanding (“MoU”) with Bina Puri Holdings Bhd. (“BPHB”) in relation to the collaboration on exploring opportunity of providing renewable power energy including roof top solar power solutions and electric vehicles charging facility initiative programs (“Programs”) at properties owned and/or managed by BPHB (“Collaboration”).

(PESTECH and BPHB are hereinafter referred to either as “Party” or “Parties”)

Rationale for the MoU

Under the MoU, the Parties are desirous to collaborate and co-operate together in exploring opportunities of providing renewable energy power solutions including roof top solar power solutions and establishing electric vehicles charging facility initiative programs at properties owned and/or managed by BPHB.

PESTECH, an integrated electrical power technology company that offers solutions for High Voltage (HV) and Extra High Voltage (EHV) electrical system which include engineering, procurement, construction and commissioning (EPCC) for power transmission system, has gradually diversified its business  to include provision of comprehensive solution for photovoltaic power plant and green electric vehicles charging infrastructure. BPHB, with over 44 years of work experience in civil and building construction, has diverse businesses locally and internationally. The Collaboration between PESTECH and BPHB aligned with the market green initiatives that are expected to bring value creation to their businesses. It also brings synergetic effect between the Parties where the Parties will have the opportunity to enhance its business portfolios and create additional revenue stream to grow the business performance.    

Salient Terms of the MoU

1. The Parties hereby agree to explore potential deployment of the Programs by utilizing its network and “know-how” and inform each other of any opportunity suitable for purposes of the Collaboration.

2.In the event where both Parties are agreeable to proceed further on the implementation of the Programs, the Parties herewith agreed that the Parties shall execute a definitive agreement upon such terms and conditions to be agreed upon later.

3.The MoU will come into effect on the date of signing of the MoU and will remain in effect for one (1) year from the effective date (“Validity Period”). The MoU can be extended by giving each Party a written notice not less than three (3) months prior to the expiry of the Validity Period. The MoU may be terminated by either Party at any time within the Validity Period by giving thirty (30) days’ notice in writing to the other Party.

Effects of the MoU

The MoU will have no material effect on earnings, revenue and net assets per share of PESTECH Group for the financial year ending 30 June 2021 but is expected to contribute positively to the future earnings of PESTECH Group, if the Collaboration between the Parties is successful.

Directors’ and Major Shareholders’ interests

None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the MoU. The Board of Directors of PESTECH is of the opinion that the MoU is in the best interest of the Company.

Approval required

The MoU is not subject to the approval of the shareholders of the Company or any regulatory authorities.

This announcement is dated 16 April 2021.