BURSA ANNOUNCEMENTS

The Board of Directors of TCB is pleased to announce that the Company had on 9 September 2016 accepted a Letter of Acceptance (“LOA”) from East Coast Economic Region Development Council (“ECERDC”) to a consortium comprising TCB and Ikatan Gemajaya Sdn. Bhd. (595641-A) (“IGSB”) for the proposed construction and completion of Ganchong water treatment works, main distribution pipeline, booster pump stations and associated works in Pekan, Pahang Darul Makmur for the ECERDC Package 3A – main distribution pipeline, main buildings and associated works at Tg. Agas (“the Works”).

The total contract price is RM73,117,000.00 as agreed by all parties and the duration of the contract is estimated to be for 104 weeks commencing from 22 September 2016 to 19 September 2018.

TCB is expected to hold approximately 49% interest in the consortium and the balance of approximately 51% will be held by IGSB. A Joint Venture Agreement (“JVA”) is envisaged to be entered into between IGSB and TCB and an announcement will be made upon execution of the JVA.  

The LOA is not expected to contribute significantly to earnings and net assets per share of TCB Group for the financial year ending 31 December 2016, when the Works commence from September 2016.

The risks associated with the LOA are normal operational risks which can be mitigated through TCB’s project management and internal business controls.

None of the Directors or major shareholders of TCB or persons connected to them have any interest, direct or indirect, in the LOA.

This announcement is dated 9 September 2016.