Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), had on 20 September 2019 accepted a Letter of Appointment dated 13 September 2019 from Northern Corridor Implementation Authority (“Client”) appointing HSSI to provide Project Delivery Management Office for all development projects by the Client within the Northern Corridor Economic Region (“Contract”).

Information on the Contract

The Contract, with an estimated contract value of RM16.8 million, commenced from 17th September 2019 and is expected to complete within the first quarter of 2022.

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 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 the development projects by the Client given the role of HSSI pursuant to the Contract is to facilitate the management of the said project.

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 23 September 2019.