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OTHERS NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - TERMINATION OF THE JOINT VENTURE AGREEMENT DATED 9 NOVEMBER 2021 BETWEEN HATTEN RENEWABLE ENERGY SDN. BHD. ("HRE") AND NESTCON SUSTAINABLE SOLUTIONS SDN. BHD. ("NSS"), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

NESTCON BERHAD

Type Announcement
Subject OTHERS
Description
NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - TERMINATION OF THE JOINT VENTURE AGREEMENT DATED 9 NOVEMBER 2021 BETWEEN HATTEN RENEWABLE ENERGY SDN. BHD. ("HRE") AND NESTCON SUSTAINABLE SOLUTIONS SDN. BHD. ("NSS"), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
For consistency purposes, the abbreviations and definitions used throughout this announcement is the same as those previously defined in the Company's announcements made on 15 September 2021 and 9 November 2021 in relation to the Strategic Partnership Agreement and Joint Venture Agreement respectively, entered into between HRE and NSS for the joint collaboration in pursuing the business opportunities in relation to the investment and development of solar photovoltaic plants and facilities in Malaysia (“Announcements”).

1. INTRODUCTION

NSS had on 9 November 2021 entered into a Joint Venture Agreement (“JV Agreement”) with HRE with the objective of forming a joint venture company (“JV Company”) to jointly co-operating and collaborating to secure, supply, construct, develop and manage solar photovoltaic plants and facilities in Malaysia.

On 15 September 2022, NSS had received a notice of termination of the JV Agreement (“Termination Notice”) from HRE due to internal change of HRE’s business strategy and growth goals in its energy division. NSS had on 15 September 2022 replied the acceptance of the Termination Notice in writing to mutually terminate the JV Agreement.

The Board of Nestcon wishes to announce that an amicable decision has been reached between NSS and HRE to mutually agree to terminate the JV Agreement subject to the terms and conditions contained in the JV Agreement and Termination Notice as agreed between both Parties.


2. RATIONALE FOR THE TERMINATION OF THE JV AGREEMENT

The mutual agreement on the termination of JV Agreement due to internal change of HRE’s business strategy and growth goals in its energy division. Both parties had decided to seek for other potential partners to meet their business objectives.


3. EFFECTS OF THE TERMINATION OF THE JOINT VENTURE AGREEMENT

The termination of the JV Agreement is not expected to have any material effect on the net assets, gearing, earnings and earnings per share of the Company for the financial year ending 31 December 2022.

There is no cost incurred by NSS from the JV Agreement as the JV Company was not incorporated since the date of the signing of the JV Agreement.


4. STATEMENT BY THE BOARD OF DIRECTORS

The Board, having considered all aspects of the mutual termination is of the opinion that the mutual termination is in the best interest of NSS.


This announcement is dated 15 September 2022.





Announcement Info

Company Name NESTCON BERHAD
Stock Name NESTCON
Date Announced 15 Sep 2022
Category General Announcement for PLC
Reference Number GA1-15092022-00038




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