Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), had on 1 August 2017 been awarded by NAZA Corporation Holdings Sdn Bhd a contract to provide Design Consultancy Services and Construction Supervision for the Proposed Tun Razak Exchange (TRX) External Roads involving “Projek Penyuraian Trafik dan Kerja-Kerja Menaiktaraf Jalan Tun Razak (Dari Jalan Langgak Golf ke Bulatan Kampung Pandan) Kuala Lumpur” (the “Contract”).

Information on the Contract

The Contract is for a period of 48 months (including 24 months of Defects Liability Period) and is expected to complete within the third quarter of 2021.

The Contract value comprises:

(a) Design Consultancy Services

      RM13,416,777.00 (exclusive of Goods and Services Tax (“GST”))

(b) Construction Supervision

      RM5,871,600 (exclusive of GST)

Pursuant to the exclusive teaming arrangement between HSSI and HEB’s wholly-owned subsidiary, HSS Engineering Sdn Bhd ("HSSE"), HSSI and HSSE will be collaborating exclusively to execute and complete the Contract. 

Financial Effects

The Contract is expected to contribute positively to the revenue, earnings and net assets of HEB Group for financial years ending 31 December 2017 to 31 December 2021.  

The Contract will not have any impact on the share capital and/or shareholding structure of HEB.

Directors’ and major shareholders’ interests

None of the Directors and/or Major Shareholders of HEB and/or persons connected to them have any interest, direct or indirect, in the Contract.

Risk Factors

The risk factors affecting the Contract include, but are not limited to, execution risks, such as the availability of skilled manpower and progress of the project. HEB Group has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believe that HEB Group is able to mitigate the aforesaid risk factors.

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.

This announcement is dated 1 August 2017.