1. Introduction

HEB wishes to announce that on 11 April 2022, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, has accepted a Letter of Appointment from Sambungan Lebuhraya Timur Sdn Bhd appointing HSSI to provide engineering consultancy services for an upcoming Infrastructure Facility project in Klang Valley (“Project”) (“Contract”).

2. Information on the Contract

Estimated Contract Value            :           RM16,269,000.00      

Commencement                          :           24 January 2022

Estimated Contract Duration       :           6 years 7 months

HSSI’s scope of services under the Contract shall include preparing and finalising the preliminary and detailed engineering design for the Project and to provide the relevant technical advisory services.  

Pursuant to the exclusive teaming arrangement between HSSI and HSS Engineering Sdn Bhd (“HSSE”), a wholly-owned subsidiary of HEB, HSSI and HSSE 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 2028.  

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 schedule of implementation and progress of the Project given the role of HSSI pursuant to the Contract is to provide engineering consultancy services for the Project as described above. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking such 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 Contract.

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 11 April 2022.