Introduction

Reference is made to the Company’s announcements dated 28 December 2017, 9 July 2018 and 3 May 2019 in relation to the appointment of its associate company, HSS Integrated Sdn Bhd ("HSSI") as the Consultant to provide Supervising Consultancy Services for Infrastructure Works for the East Coast Rail Link (“ECRL”) from KM0 to KM231.5 of the ECRL (“Contract”), immediate suspension of the Contract and the resumption of the Contract respectively.

Information on the Contract

Following the resumption of the Contract announced on 3 May 2019, the Board of Directors wishes to announce that HSSI has on 23 September 2019 entered into a Consultancy Agreement with China Communications Construction (ECRL) Sdn Bhd revising the Contract. However, there is no change in HSSI’s scope of services and the estimated value of the revised Contract remains at RM82.5 million.

The Contract is expected to complete within the fourth quarter of 2026.

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 2026.  

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

Risk Factors

The Board of Directors does not envisage any specific risk to be associated with the finalization of the scope of services and estimated Contract value.

Directors’ and/or major shareholders’ interests

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

This announcement is dated 23 September 2019.