OTHERS PESTECH INTERNATIONAL BERHAD ("PESTECH" or "the COMPANY") -
LETTER OF AWARD FOR THE SUPPLY AND DELIVERY OF SMART METERS FROM TENAGA NASIONAL BERHAD
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 29 September 2023 (late evening), received a Letter of Award (“LOA”) from Tenaga Nasional Berhad (“TNB”) for supply and delivery of 79,800 units of Single Phase Radio Frequency smart meters together with 19,950 units of Three Phase Radio Frequency smart meters in line with TNB’s Advanced Metering Infrastructure (“AMI”) implementation (“Project”) at a total contract amount of RM21,166,950 (Ringgit Twenty One Million One Hundred Sixty Six Thousand Nine Hundred Fifty only) (hereinafter referred to as the “Contract”).
The Contract shall be effective from the date of the LOA for a duration of two (2) years. PSB will implement the Project together with PESTECH Energy Sdn Bhd, a subsidiary of PIB, which is spearheading the smart metering infrastructure business of the Group.
From 2019 up to to-date, the Group had secured a total of RM139,798,173.36 (Ringgit One Hundred Thirty Nine Million Seven Hundred Ninety Eight Thousand One Hundred Seventy Three and Sen Thirty Six only) smart meters order from TNB, inclusive of the Contract, interim orders and variation orders, which consisted a total of 643,455 units of smart meters.
The award of contracts signifies the Group’s capability in continuously meeting the standard specifications and delivery performance as required by TNB. It reaffirms the reliable track records build by the Group in the smart metering and AMI business segment, allowing the Group to tap on more prospects in the smart metering for other phases in TNB as well as in the region.
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 year ending 30 June 2024 and 30 June 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 2 October 2023.
