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OTHERS SEREMBAN ENGINEERING BERHAD ("SEB" or "COMPANY") - LETTER OF AWARD FROM MIE INDUSTRIAL SDN BHD FOR SUPPLY, FABRICATION AND INSTALLATION OF STEEL STRUCTURAL WORK ("THE CONTRACT")

SEREMBAN ENGINEERING BERHAD

Type Announcement
Subject OTHERS
Description
SEREMBAN ENGINEERING BERHAD ("SEB" or "COMPANY") 
- LETTER OF AWARD FROM MIE INDUSTRIAL SDN BHD FOR SUPPLY, FABRICATION AND INSTALLATION OF STEEL STRUCTURAL WORK ("THE CONTRACT")

 

1.INTRODUCTION

 

The Board of Directors of SEB (the “Board”) is pleased to announce that the Company had on 23 September 2022 received the letter of award dated 23 September 2022 from MIE Industrial Sdn Bhd as the subcontractor in relation to the supply, fabrication and installation of steel structural work for SDIEM Complex # 2 Factory Project (Zone A) in Negeri Sembilan Darul Khusus.

 

2.VALUE AND DURATION OF THE CONTRACT

 

The total value (fixed sum) of the Contract is RM72,000,000.00 and the duration is determined based on the overall period of completion of Ten (10) Months from the date of commencement of work, which is expected to commence on 26 September 2022 and to be completed on 30 May 2023 or within any extended period.

 

 

3.RISK FACTORS

   

The risk factors affecting the Contract comprise mainly the normal operational and execution risks of which the Group will take appropriate measures to address them.

 

 

4.FINANCIAL EFFECTS

 

The Contract will not have any effect on the total issued share capital of the Company. Barring unforeseen circumstances, it is expected to contribute positively towards the earnings and net assets per share of the Company for the financial year ending 30 June 2023 and until the completion of the Contract. 

 

The Contract will be funded via internally generated funds and project financing as and when required.

 

 

5.DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

 

Save and except for the below-mentioned, none of the Directors and other Major Shareholders of the Company and person(s) connected to them has any interest, direct or indirect, in the Contract.

 

As part of the group synergy and in furtherance of the shareholders’ mandate for the recurrent related party transaction of a revenue or trading in nature (“RRPT Mandate”), MIE Industrial Sdn Bhd, being the Major Shareholder of the Company, has awarded to SEB the contract works (including the Contract) for up to RM204,894,505 in value as at the date of this announcement.

 

The RRPT Mandate which was sought at the annual general meeting held on 16 December 2021, will be subject to renewal at the forthcoming annual general meeting.

 

 

6.STATEMENT BY DIRECTORS

 

The Board, having taken into consideration all aspects of the Contract, is of the opinion that the Contract is in the best interest of the Company.

 

The announcement is dated 23 September 2022.






Announcement Info

Company Name SEREMBAN ENGINEERING BERHAD
Stock Name SEB
Date Announced 23 Sep 2022
Category General Announcement for PLC
Reference Number GA1-22092022-00039