Introduction

HEB wishes to announce that on 22 February 2021 SMHB Sdn Bhd (“SMHB”), an associate of HEB, has accepted a Letter of Acceptance from the Government of Malaysia appointing SMHB to provide engineering consultancy services for “Projek Pengepaman Terus dari Kolam Takungan di Sungai Selangor dan Sungai Langat untuk Menjamin Tiada Gangguan Operasi LRA SSP 1, 2, 3, Rantau Panjang dan Semenyih Semasa Berlaku Insiden Pencemaran Air” (“Project”) (“Contract”).

The Project is aimed to ensure uninterrupted operations of the Water Treatment Plants at SSP 1, 2, 3, Rantau Panjang and Semenyih in the event of disruptive pollution.  

Information on the Contract

SMHB’s scope of services under the Contract include undertaking detailed engineering design, contract management and construction supervision. 

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 2021 to 31 December 2024.  

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 Contracts.

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 the role of SMHB pursuant to the Contract is to provide engineering consultancy services for the Project. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking similar 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 22 February 2021.