Introduction

The Board of Directors of Advancecon is pleased to announce that Advancecon Development Sdn. Bhd. (“ADSB”), an indirect wholly-owned subsidiary of the Company had on 27 November 2023 accepted the Letter of Award (“LOA”) from Perak Corporation Berhad (“Perak Corp”) for the appointment of ADSB as joint venture partner for the development of the main infrastructure for the Silver Valley Technology Park (“SVTP”) Industrial Hub and sale of completed industrial lots with main infrastructure on thirty-nine (39) pieces of leasehold lands measuring 798.24 acres all located in Mukim Hulu Kinta, Daerah Kinta, Perak (“Land”) for a total gross development value of RM1,032,755,328 (“Proposed Joint Development”).

This Proposed Joint Development is subject to the execution of a Joint Development Agreement (“JDA”) to be entered into between Perak Corp and ADSB in due course.

ADSB is principally involved in the Business of Property Investment, Development and Construction.

SALIENT TERMS

The salient terms of the LOA are as follows:

(i)       The Proposed Joint Development shall be for a period of five (5) years from the effective date of fulfilment of the following conditions precedent:

          a)  the approval of the relevant authorities;

          b)  the approval from the shareholders of Perak Corp at an Extraordinary General Meeting to be convened;

          c)   the approval from Bursa Malaysia Securities Berhad (“Bursa Securities”) on Perak Corp’s regularisation plan;

          d)  the written undertaking from Perbadanan Kemajuan Negeri Perak, the registered and beneficial owner of the Land and the holding corporation of Perak Corp, that the Land are free from all encumbrances and the original issue document of titles of the Land shall be released to Perak Corp in accordance with the decisions and directions given by the joint management committee, at written request of Perak Corp and/or ADSB for change of land category, condition or restriction, or charging of the Land to financier by ADSB (where applicable), subject to and in accordance with the provisions of the agreement to be signed by the parties; and

          e)  ADSB has obtained the financing facility for the Proposed Joint Development;

          within fifteen (15) months from the date of the JDA, or such other extended period as may be mutually agreed.

(ii)     Perak Corp and ADSB shall be entitled to a revenue share of 35% and 65% based on the net development value respectively.

Risk Factors

There are no foreseeable significant risks other than operational risk associated with the Proposed Joint Development during the development period.

Financial Effects

Barring any unforeseen circumstances, the Proposed Joint Development is expected to contribute positively towards the future earnings of Advancecon Group for the duration of the development and will not have any effect on the share capital and substantial shareholders’ shareholdings of Advancecon Group.

The Group intends to fund the Proposed Joint Development via internally generated funds and/ or external borrowings.

Directors' and Substantial Shareholders' Interest

None of the Directors and/or substantial shareholders and/or any person connected to them has any interest, either direct or indirect in the Development.

Directors’ Statement

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

This announcement is dated 27 November 2023.