The Board of Directors of Varia is pleased to announce that Pembinaan Teguh Maju Sdn Bhd, a wholly-owned subsidiary of Varia, has on 27 August 2024 accepted a Letter of Award from Kator Construction Sdn Bhd for a project known as “Rancangan Tebatan Banjir Sungai Muar Fasa 3 Pakej 1 di Daerah Segamat, Johor – Menaiktaraf Sungai Muar di antara pertemuan Sungai Jementah sehingga pertemuan Sungai Labis serta Kerja-Kerja Berkaitan (“Project”) – Appointment as sub-contractor of the Project (“Contract”).

The total sum of the Contract is RM410,301,352.84. The commencement and completion dates for the Contract shall align with the main contract’s timeframe, for a period of 60 months from the date of commencement on 23 July 2024 until the date of completion on 22 July 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 27 August 2024.