1. INTRODUCTION

HEB wishes to announce that on 12 August 2024, HSS Integrated Sdn. Bhd. (“HSSI”), an associate of HEB, accepted a Letter of Instruction (“LOI”) from Yellowwood Properties Sdn. Bhd. (“YPSB”) to provide project construction management services (“Services”) to YPSB for a new data centre campus to be located at Jalan Digital 11, Sedenak Tech Park, Kulai, Johor Darul Takzim, Malaysia (“Project”). The LOI was issued pursuant to the Framework Agreement for Consultancy Services executed between YPSB and HSSI on 12 January 2023.

2. ESTIMATED SERVICES VALUE

Estimated Services Value: RM 10,282,580.00 (exclusive of Sales and Service Tax)

Commencement: 1st August 2024

Estimated Services Duration: 22 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 2024 to 31 December 2026.  

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 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 LOI is in the best interest of HEB Group and is a critical step forward, aligning with the Group's strategic objectives.

This announcement is dated 12 August 2024.