1. INTRODUCTION

Further to the Company’s announcement made on 26 October 2020 in relation to the execution of Letter of Intent, the Board of Directors of GDB (“Board”) wishes to announce that its wholly-owned subsidiary, Grand Dynamic Builders Sdn Bhd (“GDBSB”) had on 9 November 2020 accepted the Letter of Award (“LOA”) from Damai City Sdn Bhd [Registration No.: 201301011484 (1041322-H)] (the “Employer”), as the Main Contractor to complete the remaining main building works for the proposed development of an integrated mixed development project known as “8 Conlay” (the “Contract”) .

2. INFORMATION ON THE CONTRACT

The Employer is a wholly-owned subsidiary of KSK Land Sdn Bhd [Registration No.: 201201043800 (1028277-H)].

The Contract Sum in the LOA is RM1,249,000,000.00 (Ringgit Malaysia: One Billion Two Hundred Forty Nine Million). The Contract Sum does not include an additional provisional value amounting to RM15,861,880.00 (Ringgit Malaysia: Fifteen Million Eight Hundred Sixty One Thousand Eight Hundred and Eighty) for Stage Performance Incentive which is a payment to be made by the Employer to GDBSB in stages upon completion of each respective specified stage of construction as agreed by the parties.

The Contract shall commence on 23 November 2020 (“Commencement Date”) for an overall construction duration of 34 months from the Commencement Date, and is scheduled to be completed by 22 September 2023.

3. RISK FACTORS

There are no foreseeable significant risks other than operational risks associated with the Contract during the contract period. 

4.  FINANCIAL EFFECTS

Barring any unforeseen circumstances, the Contract is expected to contribute positively towards the future earnings of GDB for the duration of the Contract and will not have any effect on the share capital and substantial shareholders’ shareholdings of GDB.

GDB intends to execute the Contract using internally generated funds and/or bank borrowings.

5.  DIRECTORS’ AND SUBSTANTIAL SHAREHOLEDRS’ INTEREST

None of the Directors and/or substantial shareholders of GDB and/or persons connected with them has any interest, direct or indirect, in the Contract.

6.  DIRECTORS’ STATEMENT

The Board, after due consideration, is of the opinion that the Contract is in the best interest of the Group. The Contract is being entered into in the ordinary course of business and is not subject to the approval of shareholders.

This announcement is dated 9 November 2020.