VIVOCOM INTL HOLDINGS BERHAD ("VIVOCOM" OR THE "COMPANY") (Formerly known as Instacom Group Berhad)

JOINT COLLABORATION OF VIVOCOM ENTERPRISE SDN BHD WITH SENI PROSPEK SDN. BHD FOR THE CONSTRUCTION OF APPROXIMATELY 377 ACRES KNOWN AS “BANDAR TASIK AMANJAYA” (“THE PROJECT”) HELD UNDER PT183716 TO PT183726 AND A PORTION OF LAND TO BE ALIENATED (REZAB TALIAPI DAN SUNGAI), MUKIM BELANJA, DAERAH KINTA, PERAK DARUL RIDZUAN (“THE LAND”). 

1. INTRODUCTION

The Board of Directors (“the Board”) of Vivocom is pleased to announce that on 4 August 2016, Vivocom had vide its subsidiary company, Vivocom Enterprise Sdn Bhd (“VESB”), entered into joint collaboration agreement (“JCA”) with Seni Perspek Sdn Bhd (“SENI”). Through the JCA, VESB is appointed to be the turnkey contractor for the development of Block A3 (measuring approximately 53.54 acres) and Block E11 (measuring approximately 12.48 acres) consisting of four (4) phases with a minimum total of 4,032 units of residential units to be built.

2.1 SALIENT TERMS OF THE JCA

The salient terms of the JCA include, amongst others, the following:-

2.1 Proposed Development

SENI has been appointed as the developer to develop the Land via development rights agreement dated 13 June 2016 made between SENI and Menteri Besar Incorporated of the Perak State Government (“MBI”),

2.1.1 Subject to the terms and conditions of the JCA, SENI will appoint VESB as the turnkey contractor and grants VESB the rights to construct, develop and complete phase 1 of the Project located in Block A3 with the irrevocable option to construct, develop and complete any and all of the remaining phases 2 and 3 located in Block A3 and phase 4 located in Block E11 of the Development based on a provisional contract value of RM189,504,000 (Ringgit Malaysia: One Hundred Eighty Nine Million Five Hundred and Four Thousand Only) (the “Contract Sum”) per phase, only with a maximum variation of 5% thereto for each phase of the Project. The project duration for each phase is 36 months and the phases may run concurrently.

2.1.2 SENI shall use its best endeavours to assist and liaise with the relevant authorities, and where so required execute or caused to be executed all relevant documents, for the procurement of all approvals, consents, authorisations, licences and permits required pursuant to the Project, including but not limited to the development order(s) and building plans for the Project, change of land use, conditions and restrictions attached to the Land

2.1.3 SENI shall undertake the marketing, sales, negotiation, liaising and procurement of end purchasers for all Units in the Project at its own cost and expense without liability to VESB.

3. SOURCES OF FUNDS

The cost and outlay by VESB as the turnkey contractor to implement the Project will be financed by way of internally generated funds and/or bank borrowings, as and when required.

4. FINANCIAL EFFECTS

Barring unforeseen circumstances, the Project is expected to contribute positively to the future earnings of Vivocom.

5. INTERESTS OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND/OR PERSONS CONNECTED

None of the directors and/ or substantial shareholders and/ or persons connected to the directors and/ or substantial shareholders of Vivocom have any interest, whether direct or indirect, in the Project.

This announcement is dated 4 August 2016.