Instacom Group Berhad (“Instacom” or “the Company")

The Board of Directors of Instacom is pleased to announce that its subsidiary company, Vivocom Enterprise Sdn Bhd (“VESB”), had received and accepted the Letter of Award (“LOA”) from Coneff Corporation Sdn Bhd (“Coneff”) on 20 January 2016, for the provision of construction works for two (2) blocks of commercial towers comprising service apartments, two (2) storeys of retail units, one (1) storey of recreational centre and seven (7) storeys of car parks located at Lot 36071 & 36072, Phase 3B, Desa Tasik, Mukim Petaling, Sg Besi, Kuala Lumpur (“the Project”). The Project is valued at RM240,418,000.00 (Ringgit Malaysia Two Hundred Forty Million and Four Hundred Eighteen Thousand).

Coneff is wholly owned by Bina Bersatu Sdn Bhd, which in turn is 70% owned by Zamurni Sdn Bhd. Coneff was formed to undertake developments projects namely the joint-development Desa Tasik Project with Dewan Bandaraya Kuala Lumpur since 1989 to develop the area.

The LOA is subject to agreement to be entered into between VESB and Coneff. This is the first project awarded to VESB in 2016. This Project shall commence on 8 March 2016 and shall be completed within forty five (45) months from the date of commencement. 

This Project is expected to contribute positively to the earnings and net assets of Instacom for the duration of the Project.

The risks associated with the Project are mainly operational risks and risk of delay in completion of the Project. Notwithstanding this, the management of Instacom will strive to ensure full compliance to the operational procedures in the execution of the requirements of the Project.

The Project is in the ordinary course of business and is not subject to the approval of the shareholders of the Company or any other relevant government authorities in Malaysia.

None of the directors and/or major shareholders of Instacom or persons connected to them have any interest, direct or indirect, in this Project.

This announcement is dated 20 January 2016.