1. INTRODUCTION
The Board of Directors (“Board”) of ASTEEL Group Berhad ("ASTEEL") is pleased to announce that ASTEEL (Sarawak) Sdn Bhd (ASWK), a wholly owned subsidiary of ASTEEL Resources Sdn Bhd, which in turn is 80.36% owned by ASTEEL, had on 9 August 2024 accepted a Letter of Award from Gamuda Engineering Sdn Bhd to a Sarnatec Sdn Bhd – ASTEEL (Sarawak) Sdn Bhd Consortium (“The Consortium”) for the construction and completion of roof and wall cladding work for EBP1A Hyperscale Data Centre at Elmina Business Park, Selangor Darul Ehsan (“the Project”) with a subcontract sum of approximately RM61.2 million.
2. DETAILS OF THE PROJECT
The Project involves construction and completion of the roof and wall cladding of the EBP1A Hyperscale Data Centre in Elmina Business Park by the Consortium jointly in accordance with the terms and conditions of the main Construction Agreement, Tender Documents, Specifications, Drawings, Bills of Quantities and the Letter of Award with construction time of fifteen (15) months from the commencement date on 12 August 2024.
3. DETAIL OF THE CONSORTIUM
The Consortium was formed between ASWK and Sarnatec Sdn Bhd (“Sarnatec”) to jointly undertake the Project, leveraging both parties’ resources and expertise. Each party will hold an equal equity interest of fifty percent (50%) in the Consortium, sharing profits and losses in proportion to their respective equity interests.
Sarnatec will act as Lead Partner, responsible for the overall coordination, management and execution of the Project, subject to Consortium’s partner decisions.
3.1 Background information of ASWK
ASWK was incorporated in Malaysia on 2 March 2020 under the Companies Act 2016. As of the date of this announcement, the total issued share capital and number of issued shares of ASWK is RM2,500,000 and 2,500,000 ordinary shares respectively.
ASWK is principally engaged in manufacture and sale of metal roofing, coated steel products, trading of hardware and building materials, as well as supply and construct of steel truss and roof coverings.
3.2 Background information of Sarnatec
Sarnatec was incorporated in Malaysia on 2 October 2012 under the Companies Act 1965. As of the date of this announcement, the total issued share capital and number of issued shares of Sarnatec is RM750,000 and 750,000 ordinary shares respectively.
Sarnatec is principally involved in construction and trading materials. It has strong technical expertise in the construction and completion of similar projects.
4. RATIONALE FOR THE PROJECT
The Project enables ASTEEL to enhance its project reference and provide a competitive advantage in future construction projects, especially with the growing demand of data centres in Malaysia.
In addition, the Project will provide a platform for both Sarnatec and ASWK/ASTEEL to collaborate further in future endeavours.
5. FINANCIAL EFFECTS OF THE PROJECT
The Project will not have any effect on the share capital and substantial shareholders’ shareholding of ASTEEL and is not expected to have any material effect on the net assets per share and gearing of ASTEEL and its subsidiaries (“ASTEEL Group”) for the financial year ending 31 December 2024.
Barring unforeseen circumstances, the Project is expected to contribute positively to the future earnings and earnings per share of the ASTEEL Group.
6. RISK FACTORS
Risk factors affecting the Project include execution risks such as availability of skilled manpower and building materials, availability of funding, weather conditions and/or political, economic and regulatory conditions.
7. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED WITH THEM
None of the Directors, major shareholders and/or persons connected with them in ASWK and ASTEEL have any interest, direct or indirect in the Project.
8. DIRECTORS’ STATEMENT
The Board, having considered all aspects of the Project was of the opinion that the Project is in the best interest of ASWK and ASTEEL Group.
This announcement is dated 9 August 2024.
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发表于 22-8-2024 02:41 AM
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