Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), has on 13 March 2019 accepted a Letter of Appointment dated 4 March 2019 from IJN Holdings Sdn Bhd appointing HSSI to provide Project Management Services for the Proposed Expansion and Construction of a New Healthcare Facility for Institut Jantung Negara, Jalan Tun Razak, Kuala Lumpur (“Contract”).

Information on the Contract

The Contract, with an estimated contract value of RM4,000,000, commenced from 1 March 2019 and is expected to complete within the first quarter of 2024, inclusive of 24 months Defect Liability Period.

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 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 2019 to 31 December 2024.  

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

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 Contract.

Risk Factors

The risk factors affecting the Contract include, but not limited to execution risks, such as progress of the expansion and construction of the facility for Institut Jantung Negara,  given that the role of HSSI pursuant to the Contract is to manage the design, contract procurement and construction works. 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.

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 13 March 2019.

Announcement Info