Reference is made to the announcement dated 18 November 2021

1. Introduction

HEB wishes to announce that on 31 May 2022, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, had accepted the Letter of Award for the following Services from Malaysia Airports Sdn Bhd (“Client”).

(a) Independent Checking Consultant (ICC) for the Design & Build packages of the proposed build and lease of a MRO facility for [Collins] at Subang Aerotech Park (“Services A”); and

(b) Independent Checking Consultant (ICC) for the Design & Build packages of the proposed development of MRO hangars and industrial buildings (“Services B”).

2. Estimated contract value

Estimated contract value (exclusive of sales and services tax) for the provision of the Services:

(a) Services A

      RM1,538,182.92

(b) Services B

      Capped at maximum of RM17,211,837.40

Period for the provision is five (5) years commencing from 22 November 2021.

3. Financial Effects

The contract for the provision of the Services (“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 2026. 

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 projects for which HSSI has been appointed to provide the Services. 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 31 May 2022.