1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that its wholly-owned subsidiary, Nestcon Sustainable Solutions Sdn. Bhd. (“NSS”), had on 15 September 2021 entered into the Strategic Partnership Agreement (“Agreement”) with Hatten Commercial Management Sdn. Bhd. (“HCM”) in respect of the joint collaboration in pursuing the business opportunities in relation to the investment and development of solar photovoltaic plants and facilities in Malaysia (“Plans”).

(NSS and HCM shall hereinafter be collectively referred to as “Parties” and individually as “Party”).

2. INFORMATION ON NSS

NSS was incorporated on 7 September 2021 under the Companies Act 2016 as a private company limited by shares. The current share capital of NSS is RM100,000.00 (Ringgit Malaysia: One Hundred Thousand) only and it is a wholly-owned subsidiary of the Company.

The Directors of NSS are Datuk Ir. Dr. Lim Jee Gin and Mr. Ong Yong Chuan.

NSS is currently dormant and the intended business activities of NSS are to carry out the business of renewable energy activities and maintenance works.

3. INFORMATION ON HCM

HCM was incorporated in Malaysia as a private company limited by shares and it is a wholly-owned subsidiary of Hatten Land Limited, a public limited company incorporated in Singapore and listed on the Catalist board of Singapore Exchange.

The registered address of HCM is situated at 48 Jalan Kota Laksamana 2/15, Taman Kota Laksamana, Seksyen 2, 75200 Melaka, Malaysia.

4. DETAILS OF THE AGREEMENT

4.1 The Agreement delineates the desirous and understanding between the Parties to jointly co-operate for the purposes of the Plans, as follows:

(a) The Parties will set up a joint venture (“JV”) and/or consortium with other potential partners to jointly secure, supply, construct, develop and manage solar photovoltaic plants and facilities (“SPPFs”) in Malaysia.

(b) The JV and/or consortium will install 6,373 solar panels on the roof of the Dataran Pahlawan Melaka Megamall to generate up to 3.19 MWp of solar-powered energy in Melaka.

(c) The JV and/or consortium will also install solar panels and set up SPPFs at all properties owned or managed by HCM and HCM’s related corporations.

(d) The Parties will jointly collaborate with other potential partners to utilise and/or secure the current and future land reserve for building large-scale solar photovoltaic facilities to generate up to 100 MWp by phases in Malaysia.

4.2 The Agreement sets out the general framework and intentions of the Parties for the Plans and for the facilitation of further definitive agreement(s) in the future.

4.3 The Parties’ detailed scope of collaboration and responsibilities shall be further defined in separate definitive agreement(s) to be discussed and mutually agreed between the Parties on a case-by-case basis for each of the Plans to be undertaken by the Parties.

4.4 The Agreement does not outline the contract value for the Plans.

4.5 The Agreement shall come into force from the date of Agreement and shall remain valid for a period of one (1) year or until the signing of definitive agreement(s) for the Plans or termination of the Agreement by the Parties. The term of the Agreement may be extended by an agreed written agreement from the Parties.

4.6 Either Party may terminate the Agreement by serving on the other Party a fourteen (14) days’ prior written notice and upon termination, the Parties shall have no further claims or obligations to each other pursuant to the Agreement.

5. FINANCIAL EFFECTS

The Agreement by itself is not expected to have any material effect on the net assets per share, earnings per share and gearing of the Company for the financial year ending 31 December 2021, however, upon the successful implementation and execution of the Plans pursuant to the terms as set out in the Agreement, it is expected that the Plans will contribute positively to the future financial performance of the Company.

6. APPROVAL REQUIRED

No approval is required from the Company’s shareholders to enter into the Agreement with HCM.

7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

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

8. STATEMENT BY THE BOARD OF DIRECTORS

The Board is of the opinion that entering into the Agreement with HCM is in the best interest of the Company.

This announcement is dated 15 September 2021.