Type	Announcement
Subject	OTHERS
Description	HSS Engineers Berhad ("HEB") - Memorandum of Understanding entered into between HEB, Sapura Secured Technologies Sdn Bhd, Synergy Generated Sdn Bhd and Penor Renewable Energy Sdn Bhd

 

1. INTRODUCTION

 

HEB wishes to announce that it had on 15 August 2019 entered into a Memorandum of Understanding (“MOU”) with Sapura Secured Technologies Sdn Bhd (“SSTSB”), Synergy Generated Sdn Bhd (“SGSB”) and Penor Renewable Energy Sdn Bhd (“PRESB”).

 

The MOU expressed the intention of HEB, SSTSB, SGSB and PRESB (collectively, “Parties”) to form a consortium, SHS Consortium, for the sole purpose of submitting a joint proposal in response to a Request for Proposal by Suruhanjaya Tenaga Malaysia to develop, finance, design, supply, install, operate and maintain a Large Scale Solar Photovoltaic Power Plant for Peninsular Malaysia (LSS3) (“Project”).

 

 

2. INFORMATION ON SSTSB, SGSB and PRESB

 

a) SSTSB

SSTSB is a company incorporated in Malaysia and having its registered address at Sapura @ Mines, 7, Jalan Tasik, The Mines Resort City, Seri Kembangan, Selangor. SSTSB is principally engaged in the business of mission critical technology innovation in the areas of secured information & communication with solutions including hardware & software engineering, research & development, system-on-system integration, mission critical service delivery and infrastructure development.

 

b) SGSB

SGSB is a company incorporated in Malaysia and having its registered address at A7-2, Block A, Jalan Selaman 1/1, Dataran Palma (Ampang Point), Ampang, Selangor. SGSB is principally engaged in the business of developing renewable energy projects, focusing on the engineering design, development, operation and maintenance of large scale solar plants.

 

c) PRESB

PRESB is a company incorporated in Malaysia and having its registered address at 13A-2-2A, 2nd Floor, Jalan Medan PB 2A, Pusat Bandar Bangi, Seksyen 9, Bandar Baru Bangi, Selangor. PRESB is principally engaged in the business of renewable energy in Malaysia.

 

 

3. SALIENT TERMS OF THE MOU

 

The Parties have agreed to collaborate as an unincorporated consortium under the name SHS Consortium to prepare and submit a proposal to Suruhanjaya Tenaga Malaysia for the Project. In the event the proposal by SHS Consortium is successful, the Parties agree for the sole purpose of implementing the Project to incorporate a special purpose vehicle company with HEB holding 28.5% equity. 

 

The MOU shall be valid for a period of one year, or upon the happening of any one of the following events, whichever shall occur first:

(a) SHS Consortium does not submit a proposal to Suruhanjaya Tenaga Malaysia for the Project by the submission date;

(b) the proposal submitted by SHS Consortium for the Project was unsuccessful; or

(c) Suruhanjaya Tenaga Malaysia cancels or aborts the Project.

 

 

4. RATIONALE OF THE MOU

 

As part of HEB’s business plan to achieve sustainable growth in the long term, HEB’s focus is on establishing recurring income through long-term based contracts within the power sector, specifically with plans to venture into renewable energy sources.

 

The execution of the MOU is consistent with HEB’s business plan and enable HEB to leverage on the Parties’ combined resources and expertise to pursue and secure the Project.

 

5. FINANCIAL EFFECTS

 

The execution MOU is not expected to have any effect on the revenue, earnings and net assets of HEB Group for the financial year ending 31 December 2019.

 

In the event that the Project is secured by SHS Consortium and the Parties enter into definitive agreement(s), the implementation of the Project is expected to have future positive financial impact on HEB Group.

 

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 MOU.

 

 

7. DIRECTORS’ STATEMENT

 

The Board of Directors, having considered all aspects of the MOU, is of the opinion that the execution of the MOU is in the best interest of HEB Group.

 

8. APPOVAL REQUIRED

 

The execution of the MOU does not require the approval from the shareholders of HEB.

 

 

This announcement is dated 16 August 2019.

 

 

 

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Announcement Info

Company Name	HSS ENGINEERS BERHAD
Stock Name	HSSEB
Date Announced	16 Aug 2019
Category	General Announcement for PLC
Reference Number	GA1-15082019-00053