1.        INTRODUCTION

The Board of Directors of Bertam (“Board”) wishes to announce that its wholly-owned subsidiary, DISB has on 19 November 2024 accepted the letter of award (“LOA”) dated 19 November 2024 awarded by Sri Timbul Sdn Bhd (“STSB”) for the construction and completion of Building and Infrastructure Works (“Contract Works”) for the proposed commercial development on Land Title TL. 077548577, at Mile 4, Jalan Lintas Utara, Sandakan Consist of Phase 1A- 14 units 2-storey shop/office, 1 unit 2-storey supermarket, Phase 1B- 14 units 2 storey shop/office, Phase 2- 6 units 2 storey shop/office (“Project”) on a contract basis for a total contract amount of RM30,996,484.80 (“Contract Sum”).

2.        INFORMATION OF THE PARTIES

            2.1             Information on DISB

DISB was incorporated in Malaysia on 30 June 1988 under the Companies Act 1965 and deemed registered under the Companies Act 2016 (“Act”) as a private limited by shares company with an issued and paid-up share capital of RM400,000 comprising 400,000 ordinary shares. DISB is a wholly-owned subsidiary of Bertam.

DISB is principally engaged in general contractor.

            2.2            Information on STSB

STSB was incorporated in Malaysia on 18 February 1981 under the Companies Act 1965 and deemed registered under the Act as a private limited company.

Presently, it has an issued and paid-up share capital of 10 comprising 10 ordinary shares.

STSB is principally engaged in property development.

3.        SALIENT TERMS

(i) Scope of Works

The Contract Works under this contract comprise the Building and Infrastructure Works and all incidental work of whatsoever kind necessary for the completion of the Project.

(ii) Contract Sum

The awarded Contract Sum amounts to RM30,996,484.80. The Contract Sum shall be adjusted according to the actual constructed works including testing and commissioning of mechanical and electrical works for building.

(iii) Commencement and Completion

DISB shall commence the Contract Works on 25 November 2024 and the date for completion shall be 24 November 2026.

4.        RATIONALE FOR THE LOA

The LOA is an avenue for the Group to increase its order book and potentially improve its income streams and profitability.  

5.        RISK FACTORS

The risk factor includes the non-fulfilment of the salient terms of the Contract Works as set out in Section 3 of this announcement, which will lead to the termination of the Contract Works.

However, DISB will take all reasonable steps to ensure that the salient terms of the Contract Works are met.

6.        FINANCIAL EFFECTS

The LOA will not have any effects on the issued and paid-up share capital and the shareholding of the substantial shareholders of Bertam as it does not involve the issuance of ordinary shares in Bertam.

However, the LOA is expected to have a positive contribution to the earning per share, net assets per share and gearing of the Bertam Group.

7.        INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH THEM

None of the Directors and substantial shareholders of Bertam and/or subsidiaries or any persons connected to them has any interest, direct or indirect, in the LOA.

8.        DIRECTORS’ STATEMENT

The Board of Directors of Bertam, after having considered the terms and conditions of the Contract Works, is of the opinion that the Contract Works is in the best interest of the Bertam Group.

This announcement is dated 19 November 2024.