INVESTOR RELATIONS

Naim Holdings Berhad (“NAIM”) is pleased to announce that its wholly-owned subsidiary, NCSB Engineering Sdn Bhd  (“NCSBE”) together with Samsung Engineering Co. Ltd (“SAMSUNG”) as an unincorporated joint venture known as SAMSUNG-NAIM JV (“JOINT VENTURE”), has on 30 August 2010 received a Letter of Award from PETRONAS Carigali Sdn Bhd (“PETRONAS CARIGALI ”), dated 27 August 2010, with an estimated value of US$766,391,965, for the provision of Engineering, Procurement, Construction and Commissioning (EPCC) services for the Sabah Oil And Gas Terminal (SOGT) Project  (“the SOGT Project”).

2. DETAILS OF THE SOGT PROJECT

 2.1 SALIENT FEATURES OF THE LETTER OF AWARD SCOPE OF WORK

The scope of work of the Letter of Award involves the engineering, procurement, construction and commissioning of Sabah Oil and Gas Terminal Project.

LETTER OF AWARD PRICE AND PAYMENT

The estimated value of the SOGT Project is US$766,391,965, payable to the JOINT VENTURE progressively throughout the SOGT Project. The Letter of Award was obtained through competitive bidding and the value of the Letter of Award was based on the scope of work specified by PETRONAS CARIGALI.

2.2   SOURCES OF FUNDING

NAIM will fund the working capital for its work from its internally generated funds and/or bank borrowings.

2.3 LIABILITIES TO BE ASSUMED

No liabilities, including contingent liabilities and guarantees, are to be assumed by NCSBE or NAIM, arising from the Letter of Award, save for the Parental Guarantee by NCSBE to be provided to PETRONAS CARIGALI as performance security for the SOGT project completion.

2.4 EXECUTION OF FORMAL CONTRACT

A formal contract between PETRONAS CARIGALI and JOINT VENTURE will be executed following the acceptance of the Letter of Award by the JOINT VENTURE.

3. INFORMATION ON NCSBE, PETRONAS CARIGALI AND SAMSUNG

3.1 NCSBE 

NCSBE was incorporated in Malaysia on 20 February 1997 and has an issued and fully paid-up share capital of RM50 million, comprising of 50 million fully paid-up ordinary shares. It specialises in earthworks, civil engineering and building construction.

3.2 PETRONAS CARIGALI

PETRONAS CARIGALI is a wholly-owned subsidiary of PETRONAS, which is undertaking the SOGT Project as the owner.

3.3 SAMSUNG 

SAMSUNG, is a professional engineering company delivering a whole range of service from feasibility studies to engineering, procurement, construction, pre-commissioning and financing. It produces state-of-the-art plant projects with its high technology and capabilities. It is a leading name embodying Korean engineering strength. SAMSUNG specializes in projects on a lump-sum turn key basis by mobilizing its world-class engineers and is successfully executing large projects across the world

4. RATIONALE AND PROSPECTS

The SOGT Project will enhance NAIM’s order book. Leveraging on the strength, expertise and experience of SAMSUNG, the SOGT Project is expected to be implemented and completed successfully. The SOGT Project is also in line with NAIM’s strategy to participate in projects in the development of oil and gas industry in Malaysia.

The Joint Venture is actively working on securing the participation of local Sabah Bumiputra Contractors for this contract in line with the requirements of PETRONAS CARIGALI.

5. FINANCIAL EFFECTS  

5.1 SHARE CAPITAL AND SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDING

The SOGT Project is not expected to have any effects on the share capital and substantial shareholders’ shareholding in NAIM for the current financial year ending 31 December 2010.

5.2 EARNINGS, NET ASSETS AND GEARING

The SOGT Project is not expected to have any material effect on the earnings, net assets and gearing of NAIM for the current financial year ending 31 December 2010. However, it is expected to contribute positively to the future earnings of the NAIM Group.


6. RISKS Risk factors affecting the SOGT Project include but are not limited to execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in political, economic and regulatory conditions. NAIM will undertake the necessary efforts to mitigate the various risk factors identified.

7. APPROVALS REQUIRED

The acceptance of the Letter of Award is not subject to the approval of any statutory body, nor the shareholders of NAIM.

8. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

In so far as the directors of NAIM are able to ascertain, none of the directors of NAIM, major shareholders of NAIM and/or persons connected with them have any interest, whether direct or indirect, in the Letter of Award.

9. DIRECTORS’ OPINION

After considering all aspects of the SOGT Project, the Board of Directors of NAIM is of the opinion that it is in the best interest of NAIM. 

10. COMPLIANCE WITH THE SECURITIES COMMISSION’S POLICIES AND GUIDELINES ON ISSUE / OFFER OF SECURITIES (“SC GUIDELINES”) To the best knowledge of the Board of Directors of NAIM, the Letter of Award has not departed from the SC Guidelines.

11. DOCUMENTS FOR INSPECTION

A copy of the Letter of Award is available for inspection at the registered office of NAIM at  9^th Floor Wisma Naim, 2 ½ Mile Jalan Rock, 93200 Kuching, Sarawak during normal business hours on Monday to Friday (except public holidays) for a period of fourteen (14) days from the date of this announcement.


Dated this 1st September 2010