1. Introduction

HEB is pleased to announce that on 12 June 2024, SMHB Sdn Bhd (“SMHB”), an associate of HEB, has accepted a Letter of Acceptance for Perkhidmatan Perunding Kejuruteraan untuk Projek Pembinaan Loji Rawatan Air Sungai Karangan Fasa 1 di Daerah Kulim, Kedah Darul Aman (“Services”).

2. Information on the Services

SMHB’s scope of services under the Services is to carry out detailed study, detailed engineering investigation, detailed design, tender preparation, supervision during construction, monitoring and advising on remedial works during Defect Liability Period for Cadangan Projek Pembinaan Loji Rawatan Air Sungai Karangan Fasa 1 (“Project”).

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 is expected to be funded via internally generated funds and/or external borrowings.

4. Risk Factors

The risk factors affecting the Services includes, but not limited to execution risks, such as dependency on the schedule of implementation and progress of the Project given the role of SMHB in providing the services for the Project 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 12 June 2024.