1. Introduction

HEB wishes to announce that HSS Integrated Sdn Bhd (“HSSI”), an associate of HEB, had on had on 10 January 2022, accepted  two (2) Framework Services from Digital Nasional Berhad (“DNB”) on the provision of consultancy services in respect of the following;

(i) Commercial Contract Management for Term Sheets and Access Agreements;

(ii) RFx and Negotiation for Site Leasing Rate Card and Special Conditions; and

(iii) Site Management Partner for Post Site Acquisition Activities (collectively, “Contract”)

2. Information on the Contract

Estimated Contract Value :           RM2,820,000.00        

Commencement               :           November 2021 to December 2022

Contract Duration             :           14 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. 

3. 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 2022.  

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

4. 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 Project given the role of HSSI pursuant to the Contract as described above. Nonetheless, HEB Group has, throughout the years, established its track record and expertise in undertaking national infrastructure projects. As such, the Board of Directors believes that HEB Group is able to mitigate the aforesaid risk factors.

5. Approval Required

The Contract, being part of the ordinary course of business of HEB Group, is not subject to the approval of shareholders of HEB or any relevant authorities.

6. 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.

7. 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 and is a significant stepping stone for HEB group and it is in line with the Group’s overall growth strategy, embarking into the telecommunication sector, complementing our core expertise in transportation and water sectors.

This announcement is dated 10 January 2022.