1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that its wholly-owned subsidiary, Nestcon Builders Sdn. Bhd. (“Nestcon Builders”), had on 11 May 2022 accepted the letter of award dated 11 May 2022 (“LOA”) awarded by Greenverse Sdn. Bhd. (“Greenverse”) for undertaking the design, construction, completion and installation of the integrated offsite scheduled wastes recovery facility on part of Lot 4A, B and C, Phase 3 in Lot Q, Kerteh Biopolymer Park (KBP), Mukim Kertih, Daerah Kemaman, Terengganu Darul Imam (“Project”).

2. INFORMATION ON NESTCON BUILDERS

Nestcon Builders was incorporated in Malaysia as a private company limited by shares and it is a wholly-owned subsidiary of the Company.

The nature of business of Nestcon Builders is principally involved in construction works.

3. INFORMATION ON GREENVERSE

Greenverse was incorporated in Malaysia as a private company limited by shares and having its business address at Lot 4, Jalan Gebeng 1/5, Kawasan Perindustrian Gebeng, 26080 Kuantan, Pahang.

Greenverse is principally involved in manufacturing, recycle to refine, to extract and otherwise dealing in and with petroleum and other oils and hydrocarbons of every description and all substances derived therefrom.

4. DETAILS OF THE LOA

(a) The total contract provisional sum for the Project is RM85,000,000.00 (Ringgit Malaysia: Eighty-Five Million) only and payment shall be made to Nestcon Builders progressively based on the actual work done as valued and certified by the architect.

(b) The overall contract period for the Project is within 36 months (“Contract Period”) from the date of commencement and the Project is expected to be completed for handover on or before 17 July 2025.

(c) The performance bond shall remain valid and effective for the entire Contract Period plus six (6) months thereafter or upon the issuance of the Certificate of Practical Completion of the Project, whichever is later.

5. FINANCIAL EFFECTS

The acceptance of the LOA by Nestcon Builders to undertake the Project is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company for the financial year ending 31 December 2022 and throughout the duration of the Project.

6. RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the LOA and/or Project. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.

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 LOA and/or Project. 

8. STATEMENT BY THE BOARD OF DIRECTORS

The Board is of the opinion that the LOA and the Project are within the ordinary course of business of Nestcon and the acceptance of the LOA is in the best interest of the Company.

This announcement is dated 11 May 2022.