Bursa Announcements

1.         INTRODUCTION

The Board of Directors of MBGB (“Board”) wishes to announce that its wholly-owned subsidiary, FBO Land (Serendah) Sdn Bhd (“FLSSB”) has been appointed by TMG Mart Sdn Bhd [Registration No. 201301026916 (1056746-W)] (“Client”) to implement the Energy Efficiency Zero Capex Program at two of the Client’s sites via the respective conditional letters of offer, subject to terms and conditions accepted by both parties, (collectively, “Offer Letter”) which were accepted by the Client on 5 June 2025.

The Offer Letter represents the successful materialisation of the collaboration stemming from the memorandum of understanding (“MOU”) entered into between MBGB and Tunas Manja Sdn. Bhd. (“Tunas Manja”) as announced on 26 November 2024, where both parties entered into the MOU to explore, amongst others, the implementation of energy efficiency initiatives at Tunas Manja’s properties. Both the Client and Tunas Manja operate grocery stores and supermarkets throughout Malaysia under the ‘TMG Mart’ brand.

2.         SALIENT TERMS OF EACH OFFER LETTER

2.1       Energy Efficiency Zero Capex Program

2.2       FLSSB is to develop, design, finance, install, construct, commission, operate and maintain the Equipment at its own cost on the Site of the Client.

2.3       The Client shall at all times provide to Tenaga Nasional Berhad (“TNB”) and FLSSB or their employees, agents or contractor, all access rights to the Site including the Equipment area, for the purposes of carrying out technical study, construction, installation, inspection, testing, operation, maintenance, replacement, removal and/or reading of the Equipment and other relevant matters.

2.4        The Client shall at all times fulfil all terms and conditions as specified in the Offer Letter, subject to terms and conditions accepted by both parties, including:

             (a) ensure that the name on the electricity bill issued by TNB matches the Client’s name;

             (b) provide all necessary documents required by the related authorities to FLSSB for obtaining the permits necessary for the installation and operation of the Equipment, within one (1) month upon signing of the Offer Letter;

             (c) clear its outstanding electricity bill with TNB (if any) and provide supporting documents within one (1) month upon signing of the Offer Letter; and

             (d) ensure that all information provided to FLSSB will be true, complete and accurate in all respect and not misleading,

2.5       FLSSB reserves the right not to continue with the Energy Efficiency Zero Capex Program subject to the outcome of site visit report and data logging result.

2.6       Upon accepting the Offer Letter, the Client shall not enter into similar discussion or agreement with any other third-party provider of the Equipment, nor withdraw from the Energy Efficiency Zero Capex Program. Any such action will result in the Offer Letter being deemed null and void in which the Client shall be liable to pay FLSSB for all work carried out and/or costs incurred by FLSSB in relation to the Energy Efficiency Zero Capex Program.

3.         INFORMATION OF THE CLIENT

The Client is a private limited company incorporated under the laws of Malaysia. The Client is principally involved in the business of operating grocery stores/supermarkets.

4.         RISK FACTORS

There are no foreseeable significant risks other than operational risk associated with the Energy Efficiency Zero Capex Program during the contract period.

5.         FINANCIAL EFFECTS

Barring any unforeseen circumstances, the Energy Efficiency Zero Capex Program is expected to contribute positively towards the future earnings of FLSSB and MBGB group as a whole for the duration of the Energy Efficiency Zero Capex Program.

The Energy Efficiency Zero Capex Program will not have any effect on the share capital and substantial shareholders’ shareholdings of the Company.

6.         INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED

None of the directors, major shareholders of the Company and/or persons connected to them have any interest, whether direct and/or indirect, in the Offer Letter and/or Energy Efficiency Zero Capex Program .

7.         STATEMENT BY THE BOARD

The Board is of the opinion that the Offer Letter and/or Energy Efficiency Zero Capex Program is in the best interest of the Company.

This announcement is dated 6 June 2025.