The Board of Directors of Varia Berhad announced that the Company has on 8 March 2024 entered into a Memorandum of Understanding ("MOU") with Sungai Klang Link Sdn Bhd ("SKL") to collaborate and work together with SKL in providing the expertise and know-how to assist SKL in the process of preparing tender, management, control and execution of works required for the proposed Sungai Klang Link Elevated Highway ("Works"). The Proposed Project involves the construction of a new tolled elevated highway of approximately 52.5 km in length aligned along the Klang river which will be integrated with the existing highway networks through 7 proposed interchanges starting from Klang with an access through an interchange of the West Coast Expressway and ends at the interchange of New Pantai Expressway 2. The Proposed Project aims to provide alternative routes for road users in the Klang Valley. SKL is now at an advanced stage of pursuing the final approval of securing the concession agreement from the Government of Malaysia ("GoM") for the right to build, manage, own and operate the Proposed Project.

The purpose of the MOU is to provide a framework for the Company and SKL (collectively referred to as the "Parties") to enter into a definitive agreement to formalise the roles and responsibilities of the Parties as well as the scope of Works upon the terms and conditions to be mutually agreed by the Parties, upon SKL securing the Proposed Project from the GoM ("Definitive Agreement"). The Definitive Agreement shall be executed between the Parties within thirty (30) days from such award of the Proposed Project by the GoM to SKL. The Parties shall be entitled to nominate any company within its group as the contracting party to the Definitive Agreement.

Under the Company's obligations, the scope of Works includes the provision of know-how, experience and expertise to plan, advise and complete the proposed collaboration, relevant services, manpower, materials and equipment as required for completing the Works. SKL shall at its own costs secure the Proposed Project from the GoM and comply with all the requirements by the GoM including to obtain the necessary approval(s) and permit(s) from the GoM and/or the relevant authorities. SKL will provide the Company with, amongst others, the requirements and technical specifications, scope of works and all relevant documents in relation to the Proposed Project and/or Works to the Company.

The MOU is valid for a period of six (6) months from the date of MOU and is subject to renewal by another six (6) months upon mutual agreement of the Parties or upon the execution of the Definitive Agreement between the Parties. The MOU could be terminated by either party by giving two (2) months' prior written notice. The MOU is entered into to establish the basis upon which both parties jointly collaborate on the Proposed Project.