1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Infra Sdn. Bhd. (“Nestcon Infra”), a wholly-owned subsidiary of the Company, had on 22 March 2024 accepted the letter of award dated 22 March 2024 (“LOA”) awarded by Iskandar Capital Sdn. Bhd. (“Iskandar Capital”) in respect of the proposed earthworks and main infrastructure works (Stage 1) for Wawari Phase 1 Township Development, Mukim Pulai, Daerah Johor Bahru, Johor Darul Ta’zim (“the Contract Works”).

2. INFORMATION ON NESTCON INFRA

Nestcon Infra was incorporated in Malaysia as a private company limited by shares having its registered address at No. 7-1, Jalan 109F, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

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

3. INFORMATION ON ISKANDAR CAPITAL

Iskandar Capital was incorporated in Malaysia as a private company limited by shares and having its business address at A18 & A19, Medini 9, Persiaran Medini Sentral 1, Bandar Medini Iskandar, 79250 Iskandar Puteri, Johor Darul Ta’zim.

Iskandar Capital is an investment holding, and principally engaged in property and land development.

4. DETAILS OF THE LOA

(a) The contract sum for the Contract Works is RM79,500,000.00 (Ringgit Malaysia: Seventy-Nine Million and Five Hundred Thousand) only.
(b) The date of possession shall be 28 March 2024 and the overall completion date shall be 27 November 2025.
(c) The defect liability period of the Contract Works shall be Twenty-Four (24) months from the date of issuance of the Certificate of Practical Completion of the Contract Works.
(d) Nestcon Infra shall carry the Contract Works in accordance with the other supplementary terms and conditions set out in the LOA.

5. FINANCIAL EFFECTS 

The acceptance of the LOA by Nestcon Infra to undertake the Contract Works is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company throughout the duration of the Contract Works.

6. RISK FACTORS

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

7. APPROVAL REQUIRED

The acceptance of the LOA is not subject to the approval from the Company’s shareholders and/or any regulatory authorities.

8. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S 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 the Contract Works.

9. STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the LOA and the Contract Works, is of the opinion that the LOA and the Contract Works 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 22 March 2024.