OTHERS - PESTECH INTERNATIONAL BERHAD ("PESTECH" OR "THE COMPANY") -
LETTER OF ACCEPTANCE FROM TENAGA NASIONAL BERHAD FOR SUPPLY, ERECTION, TESTING AND COMMISSIONING OF NEW PRIMARY AND SECONDARY EQUIPMENT AT PMU 275KV AYER TAWAR, PERAK
PESTECH INTERNATIONAL BERHAD
The Board of Directors of PESTECH (“Board”) wishes to announce that its wholly-owned subsidiary company, PESTECH Sdn. Bhd. (“PSB”), had on 26 January 2024 received the Letter of Acceptance dated 26 January 2024 (“LOA”) from Tenaga Nasional Berhad (“TNB”) for the supply, erection, testing and commissioning of new primary and secondary equipment at PMU 275kV Ayer Tawar, Perak complete with relevant protection, control, ancillary equipment and associated civil works (“Contract”) at a Contract value of RM11,000,011.00 (Ringgit Malaysia : Eleven Million and Eleven only).
The Contract shall be effective from the date of this LOA and the time for completion shall be 540 days from the commencement date to be determined by TNB later.
PESTECH will be focusing in securing engineering, procurement, construction, and commissioning ("EPCC") projects in the rail electrification and power grid built-up in the near future. The strategic emphasis will revolve around leveraging and highlighting PESTECH's core competencies in the EPCC segment. Simultaneously, the Group is undergoing a concerted effort to explore business opportunities in its market segments.
The Contract is expected to contribute positively towards the revenue and earnings of PESTECH in accordance with the stages of the progress to be recognised in the financial years ending 30 September 2024 and 30 September 2025, and is expected to contribute positively to the net asset per share of the Company.
PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Contract. The Company will take necessary steps to mitigate the risks as and when it occurs.
None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Contract.
The Board is of the opinion that the Contract is in the best interest of the Company.
This announcement is dated 29 January 2024.