1. INTRODUCTION

HEB wishes to announce that on 13 February 2023, SMHB Sdn Bhd (“SMHB"), an associate of HEB, has entered into a Contract Agreement with TNB Power Generation Sdn. Bhd, appointing The Consortium of SMHB, AFRY Switzerland Ltd, and AFRY Malaysia Sdn. Bhd. (hereinafter known as “AFRY-SMHB Consortium”) to provide Owner’s Engineer Services For Life Extension Program of Sungai Perak Hydroelectric Station During Project Implementation.

2. INFORMATION  ON THE SERVICES

Estimated Services Value            :             RM 22,943,615 (including the 6% of Services Tax).

Commencement                           :           January 2023

Estimated Services Duration        :           96 months

SMHB’s scope of services under the Services is to review the contractor’s documentation and provide construction supervision.

Pursuant to the exclusive teaming arrangement between SMHB and SMHB Engineering Sdn. Bhd. (“SMHBE”), a wholly-owned subsidiary of HEB, SMHB and SMHBE 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 Services 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 said Services given the role of SMHB pursuant to the Services 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 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 13 February 2023.