Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), had on 14 August 2017 accepted a Letter of Appointment and entered into a Consultancy Agreement with BBCC Development Sdn Bhd for appointment as the Consultant Civil and Structural Engineer & Mechanical and Electrical Engineer for External Infrastructure Works for “Cadangan Pembangunan Bercampur Bukit Bintang City Centre yang mengandungi Pusat Membeli Belah, Ruang Pejabat, Pusat Persembahan Muzik, Pangsapuri Perkhidmatan dan Hotel di atas Lot PT143, Seksyen 56 di Jalan Hang Tuah / Jalan Pudu, Wilayah Persekutuan Kuala Lumpur” (the “Contract”).

Information on the Contract

The Contract, with a value of RM6,429,000.00, commenced from the acceptance of the Letter of Appointment and the Consultancy Agreement and is expected to complete within the final quarter of 2021 (inclusive of 24 months of Defects Liability Period).

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 believes 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 14 August 2017.