Introduction

HEB wishes to announce that on 22 April 2021, HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, has accepted a “Surat Setuju Terima” from the Government of Malaysia appointing HSSI for “Project Management Consultant (PMC) Bagi Fasa 1 Projek Lebuhraya Pan Borneo Sabah” (“Contract”).

Information on the Contract

HSS’ scope of services under the Contract is to provide project management consultancy services for “Fasa 1 Projek Lebuhraya Pan Borneo Sabah” (“Project”) which includes administration and supervision management of the Project.

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 2021 to 31 December 2026.  

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 schedule of implementation and progress of the said Project given the role of HSSI pursuant to the Contract is to provide project management consultancy services for the Project as described above. 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 22 April 2021.