Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), has on 23 October 2019 accepted a Letter of Appointment dated 22 October 2019 from Kementerian Kerja Raya Malaysia appointing HSSI as the Independent Consulting Engineer (ICE) for Pan Borneo Highway, Sabah (“Contract”).

Information on the Contract

The Contract, with contract value of RM12.86 million, commenced from 1 April 2017 and is expected to complete by 31 December 2019.

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 year ending 31 December 2019.  

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 works for which HSSI has been appointed as the Independent Consulting Engineer.

Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking such projects and the Contract is expected to be completed by 31 December 2019. 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 October 2019.