The Board of Directors of Varia is pleased to announce that Pembinaan Teguh Maju Sdn Bhd, a wholly-owned subsidiary of Varia, has on 23 July 2024 accepted a Letter of Award from Best Metro Builder Sdn Bhd for a project known as “Projek Menaiktaraf Loji Rawatan Kumbahan Serantau di Mak Mandin dan Pembinaan Rangkaian Paip Pembetungan Dalam Kawasan Tadahan Butterworth North, Pulau Pinang (Reka Dan Bina)” (“Project”) – appointment as sub-contractor to supply labour, plants, materials, equipment, tools, transport, temporary works and ancillary needed for the design, construction and completion of sewerage treatment plant, network pump station, sewerage network, rationalisation and decommissioning, testing, commissioning and maintenance works of the Project (“Contract”).

The total sum of the Contract is Ringgit Malaysia Five Hundred and Fifty Five Million (RM555,000,000.00) only. The Contract is for a period of 57 months from the date of commencement on 25 June 2024 or the commencement from individual site possession kick off date (whichever is the later) until the date of completion which shall be on 24 March 2029.  

The Contract is expected to contribute positively to the earnings of Varia Group for the relevant financial periods within the duration of the Contract. The Contract will not have any effect on the share capital and shareholding structure of Varia.

The risk factors affecting the Contract includes changes in economic, political and regulatory environment and general operational risks. The Group will take appropriate measures to mitigate such risks.

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 Contract.

This announcement is dated 23 July 2024.