Introduction

The Board of Directors of Stella is pleased to announce that the Company has on 3 July 2020 accepted the Letter of Conditional Acceptance of Tender dated 30 June 2020 (“the Letter”) from Permodalan Negeri Selangor Berhad (206347-V) (“PNSB”) for the Proposed Joint Development of land owned by PNSB on a parcel of land which is held under title P.T 559 & P.T 92, Pekan Sungai Buloh, Mukim Api-Api, Daerah Kuala Selangor, Selangor Darul Ehsan measuring approximately 61.65 acres (“the Land”) for the proposed development of a mixed development and “Selangor Seafood Center” (“the Project”).

Salient Terms of the Project

The salient terms of the Project are as follows

1. The Letter shall be subject to the execution of a development rights agreement between PNSB and the Company (“Agreement”) within forty-five (45) days from the date of the acceptance of the Letter.

2. The Gross Development Value (“GDV”) of the Project is approximately Ringgit Malaysia Two Hundred and Forty Eight Million One Hundred and Ninety Four Thousand (RM248,194,000.00) only.

All other terms and conditions of the Project will be further set out in the Agreement. The Board will make the necessary announcement to Bursa Malaysia Securities Berhad upon execution of the Agreement.

Financial Effects

The Project is not expected to contribute to the earnings and net assets of Stella Group for the financial year ending 31 March 2021. However, the Project is expected to contribute positively to the earnings and net assets of Stella Group for the future financial years. The Project will not have any effect on the share capital and shareholding structure of Stella.

Risks

The risks factors affecting the Project includes changes in economic, political and regulatory environment and general operational risks which are common in the property development sector. The Group will take appropriate measures to mitigate such risks.

Directors’ and/or Major Shareholders’ Interest

None of the directors and/or major shareholders of the Company and/or persons connected with them has any interest, whether direct or indirect in the Project.

This announcement is dated 3 July 2020.