1. INTRODUCTION

HEB wishes to announce that on 14 September 2022, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, accepted “Surat Setuju Terima” from Kerajaan Negeri Kedah Darul Aman appointing HSSI as the engineering consultant to provide engineering consultancy and supervision services (“Services”) for the Project.

2. ESTIMATED SERVICES VALUE

Estimated Services Value             :         RM5,210,605.70 (including the 6% of Services Tax).

Commencement                           :          2 March 2021

Estimated Services Duration        :          46 Months

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 the financial years ending 31 December 2022.  

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

The Services are expected to be funded via internally generated funds and/or external borrowings.

4. RISK FACTORS

The risk factors affecting the Services include, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the Project 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 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 Project or 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 14 September 2022.