Introduction

The Board of Directors of MRB (“Board”) is pleased to announce that Minetech Construction Sdn Bhd [Registration No. 198901007269 (184572-W)] ("MCSB"), a wholly-owned subsidiary of MRB had on 10 January 2020 accepted a Letter of Award dated 20 December 2019 from GLM Emerald Square (Cheras) Sdn Bhd [Registration No. 201501001473 (1126805-P)] appointing MCSB as contractor to undertake and complete the Upgrading Works along Cheras – Kajang Expressway (CKE) for the proposed Emerald 9 Cheras Development on Lot 809 and 810, Mukim Cheras, Daerah Hulu Langat, Selangor Darul Ehsan at a contract value of RM27.688 million (“Contract”).

The physical construction work is expected to complete by second quarter of 2022.

Financial Effects

The Contract is expected to contribute positively to the revenue, earnings and net assets of MRB Group for financial year ending 31 March 2021.

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

Risk Factors

The Contract is subject to normal business risks such as increase in cost due to any escalation of material costs and availability of skilled manpower. MRB Group management would put in place control measures and operational procedures to reduce the impact or likelihood of such events. The Board believes that the Group is able to mitigate any of the aforesaid risk factors.

Directors’ and/or major shareholders’ interests

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

Directors’ Statement

The Board of Directors, after considering amongst others, the potential financial benefits arising from the Contract, is of the opinion that the acceptance of the Letter of Award is in the best interest of MRB Group.

This announcement is dated 10 January 2020.