1. INTRODUCTION

HEB wishes to announce that on 16th January 2023, HSS Integrated Sdn. Bhd. (“HSSI”), an associate of HEB received a Letter of Instruction from Yellowwood Properties Sdn. Bhd. (“YPSB”) to provide project management services (“Service”) to YPSB for a new build data centre campus and its electrical substation to be located at Sedenak Tech Park (STEP), Johor Darul Takzim, Malaysia (“Project”). The Letter of Instruction was issued pursuant to a Framework Agreement for Consultancy Services executed between YPSB and HSSI.

2. ESTIMATED SERVICES VALUE

Estimated Services Value            :          RM 8,795,200.00 (inclusive of Sales and Service Tax).

Commencement                           :         12th January 2023

Estimated Services Duration        :         18 Months

HSSI’s scope of services shall cover all phases of the Project including, but not limited to project control & reporting, planning, construction management and health & safety management.

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 2023.  

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 Contract is in the best interest of HEB Group and is a significant stepping stone for HEB group and it is in line with the Group’s overall growth strategy, embarking into the data centre sector, complementing our core expertise in Transportation and Water Sector

This announcement is dated 16th January 2023.