1. Introduction

HEB wishes to announce that on 3 January 2022, SMHB Sdn Bhd (“SMHB”), an associate of HEB, has accepted a Letter of Appointment from GPQ Sdn Bhd – LGB Engineering Sdn Bhd Joint Venture (“Client”) appointing SMHB to provide engineering consultancy services for a project by Jabatan Kerja Raya Malaysia for “Menaiktaraf Jambatan Merentasi Sg Marang di Laluan FT003 Jalan Kuala Terengganu – Kuantan, Marang, Terengganu” (“Project”) (“Contract”).

Jabatan Kerja Raya Malaysia has awarded the design and build contract for the Project to the Client.

2. Information on the Contract

Estimated Contract Value            :           RM15,078,371.25      

Commencement                         :           January 2022

Contract Duration                         :           42 months

SMHB’s scope of services under the Contract includes undertaking detailed engineering design and construction supervision. 

Pursuant to the exclusive teaming arrangement between SMHB and SMHB Engineering Sdn Bhd (“SMHBE”), a wholly-owned subsidiary of HEB, SMHB and SMHBE will be collaborating exclusively to execute and complete the Contract. 

3. Financial Effects

The Contract is expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2022 to 31 December 2025.  

The Contract will not have any impact on the share capital and/or shareholding structure of HEB.

4. Risk Factors

The risk factors affecting the Contract include, but not limited to execution risks, such as dependency on the progress of the Project that the role of SMHB pursuant to the Contract is to provide engineering consultancy services for the Project. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking similar projects. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors.

5. Approval Required

The Contract, being part of the ordinary course of business of HEB Group, is not subject to the approval of shareholders of HEB or any relevant authorities.

6. Directors’ and/or major shareholders’ interests

None of the Directors and/ or Major Shareholders of HEB and persons connected to them has any interest, direct or indirect, in the Contracts.

7. Directors’ Statement

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Contract is in the best interest of HEB Group.

This announcement is dated 3 January 2022.