Introduction

HEB wishes to announce that its associate company, SMHB Sdn Bhd (“SMHB”), had on 3 September 2019 accepted a Letter of Appointment dated 22 August 2019 from Gamuda Water Sdn Bhd to provide Engineering Consultancy Services for the Proposed Residuals Disposal Works for Sg Selangor Phase 3 (SSP3) Bukit Badong and Rasa Water Treatment Plants and River Monitoring Stations (“Contract”).

Information on the Contract

The Contract, with a contract value of RM3,611,078 commenced on 3 September 2019 and is expected to complete within the third quarter of 2022.

Pursuant to the exclusive teaming arrangement between SMHB and SMHB Engineering Sdn Bhd (“SMHBE”), a wholly-owned subsidiary of HEB, SMHB and SMHBE 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 2022.  

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 dependency on the progress of Proposed Residuals Disposal Works given the role of SMHB pursuant to the Contract is to design and supervise the execution of the said 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 3 September 2019.