Circular to Shareholders in Relation to Part a Proposed Acquisition by Favelle Favco Berhad (“Ffb” or “Company”) of a Crane Fabrication Yard Comprising Freehold Industrial Land, Buildings and Improvements, Located at No. 28 Yarrunga Street, Prestons, New South Wales, 2170 Australia With a Total Land Area Measuring Approximately 11.6 Acres From Muhibbah Engineering (M) Bhd for a Total Purchase Consideration of Aud15,000,000 (Equivalent to Rm48,091,500), to Be Satisfied via the Issuance of 31,678,743 New Ordinary Shares of Rm0.50 Each in Ffb (“Ffb Shares”) at an Issue Price of Rm1.5181 Per Ffb Share (“Proposed Acquisition”) Part B Independent Advice Letter From Kaf Investment Bank Berhad to the Non-interested Shareholders of Ffb in Relation to the Proposed Acquisition

CIRCULAR TO SHAREHOLDERS IN RELATION TO PART A PROPOSED ACQUISITION BY FAVELLE FAVCO BERHAD (“FFB” OR “COMPANY”) OF A CRANE FABRICATION YARD COMPRISING FREEHOLD INDUSTRIAL LAND, BUILDINGS AND IMPROVEMENTS, LOCATED AT NO. 28 YARRUNGA STREET, PRESTONS, NEW SOUTH WALES, 2170 AUSTRALIA WITH A TOTAL LAND AREA MEASURING APPROXIMATELY 11.6 ACRES FROM MUHIBBAH ENGINEERING (M) BHD FOR A TOTAL PURCHASE CONSIDERATION OF AUD15,000,000 (EQUIVALENT TO RM48,091,500), TO BE SATISFIED VIA THE ISSUANCE OF 31,678,743 NEW ORDINARY SHARES OF RM0.50 EACH IN FFB (“FFB SHARES”) AT AN ISSUE PRICE OF RM1.5181 PER FFB SHARE (“PROPOSED ACQUISITION”) PART B INDEPENDENT ADVICE LETTER FROM KAF INVESTMENT BANK BERHAD TO THE NON-INTERESTED SHAREHOLDERS OF FFB IN RELATION TO THE PROPOSED ACQUISITION