Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd (“HSSI”) has on 9 December 2019 accepted a Letter of Appointment dated 28 November 2019 from Iskandar Regional Development Authority appointing HSSI as the Lead Consultant for “Kerja-Kerja Penyediaan Rekabentuk Terperinci dan Penyeliaan Kerja di Tapak Bina” for “Pelaksanaan Projek Perintis Sistem Pengangkutan Bus Rapid Transit di 3 Laluan Berkapasiti Tinggi dan Pembinaan Laluan Khas (Busway)” ("Project")(“Contract”). 

Information on the Contract

The Contract, with a contract value of RM71,335,133 (excluding 6% sales and services tax), will be commencing in the fourth quarter of 2019 and is expected to complete within the first quarter of 2025 (inclusive of Defect Liability Period of 24 months).

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 2025.  

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 Project given that the role pursuant to the Contract is as the Lead Consultant. HEB Group has, throughout the years, established its track record and expertise to undertake 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 9 December 2019.