1.INTRODUCTION

The Board of Directors of SEB (the “Board”) is pleased to announce that the Company had on 30 November 2022 received the purchase order dated 30 November 2022 from the Major Shareholder of the Company, MIE Industrial Sdn Bhd as the subcontractor in relation to the supply labour, manpower, tools and equipment to carry out mechanical and piping works for a project in the northern region of Malaysia ("Contract").

2.VALUE AND DURATION OF THE CONTRACT

The total value (provisional sum) of the Contract is RM104,000,000.00 and the duration is determined based on the overall period of completion of Fourteen (14) Months from the date of commencement, which is expected to commence on 01 December 2022 and to be completed on 18 Jan 2024 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”), the contract works (including the Contract) involving MIE Industrial Sdn Bhd, is up to RM309,053,505 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 30 November 2022.