1. Introduction

HEB wishes to announce that on 14 February 2024, SMHB Sdn Bhd (“SMHB”), an associate of HEB, has accepted a Letter of Acceptance from Pengurusan Aset Air Berhad (“Client”) for the provision of Engineering Consulting Services for the Cadangan Menaiktaraf Sistem Bekalan Air di Daerah Kuantan, Pekan dan Rompin, Negeri Pahang Op4-22 – Fasa 1 (“Services”).

The Client is a wholly-owned company of the Ministry of Finance (Incorporated), Malaysia.

2. Information on the Services

The Services conducted by SMHB shall include but not limited to Detailed Design and Construction Supervision.

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 2024 to 31 December 2027.

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 for which SMHB 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 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 February 2024.