1. Introduction

HEB wishes to announce that on 15th April 2022, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, has accepted a Letter of Appointment from Mass Rapid Transit Corporation Sdn. Bhd. (“Employer”) appointing HSSI to provide peer review consultancy services for:

(a)Tender Documentation for Civil Main Contractor (“CMC”); and

(b)Tender Documentation for Line Wide Systems Contractor (“STC”);

for “Projek Mass Rapid Transit Laluan 3: Laluan Lingkaran” (collectively, the “Services”).

2. Information on the Services

Estimated Services Value           :           RM11,288,652.40      

Commencement                         :           15th April 2022

Estimated Contract Duration       :           11 months

The role of HSSI is to undertake an independent review and provide an endorsement that the said Tender Documentation are in compliance with requirements prescribed by the Employer.      

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 Services. 

3. Financial Effects

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

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

4. Risk Factors

The risk factors affecting the Services include, but not limited to execution risks, such as dependency on the progress and completion of the Tender Documentation given HSSI’s role is to review and endorse the same as described above. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking such Services. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors.

5. Approval Required

The Services, 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 Services.

7. Directors’ Statement

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

This announcement is dated 15th April 2022.