1. INTRODUCTION
The Board of Directors of EHB (“the Board”) wishes to announce that EXSIM Concepto Sdn. Bhd. (“ECSB”), a wholly-owned subsidiary of the Company, had on 21 February 2025 accepted the letter of award dated 21 February 2025 (“LOA”) awarded by EXSIM Waterfront Sdn. Bhd. (“EWSB”) for the renovation works for sales gallery and show units at MBF Tower, Penang (“the Contract Works”).
2. INFORMATION ON ECSB
ECSB was incorporated in Malaysia as a private company limited by shares having its registered address at No. D-09-02, Level 9, EXSIM Tower, Millerz Square @ Old Klang Road, Megan Legasi, No. 357, Jalan Kelang Lama, 58000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
The nature of business of ECSB is principally involved in providing specialised fit-out services for hospitality property assets.
3. INFORMATION ON EWSB
EWSB was incorporated in Malaysia as a private company limited by shares and having its business address at D-35-01, Level 35, EXSIM Tower, Millerz Square @ Old Klang Road, Megan Legasi, No. 357, Jalan Kelang Lama, 58000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.
The nature of business of EWSB is principally involved in carrying the business of developer, builders, and contractors for all buildings and works of any kind, and among other things, to construct, execute, carry out, equip, improve works, develop, administer, maintain, manage, or control in Malaysia and elsewhere private works and dwelling houses of all kinds.
4. DETAILS OF THE LOA
(a) The contract sum for the Contract Works is RM3,000,000.00 (Ringgit Malaysia: Three Million Only) (“the Contract Sum”).
(b) The date of commencement shall be 21 February 2025.
(c) The overall completion for the Contract Works is within Nine (9) weeks from the date of commencement and the whole works must be completed on or before 28 April 2025 or within such extended date of the conditions of contract provides.
(d) The defect liability period shall be Twelve (12) months from the date of completion.
(e) ECSB shall carry the Contract Works in accordance with the other supplementary terms and conditions set out in the LOA.
5. FINANCIAL EFFECTS
The acceptance of the LOA by ECSB to undertake the Contract Works is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company throughout the duration of the Contract Works.
6. RISK FACTORS
The Company does not foresee any exceptional risk other than the normal operational risks associated with the LOA and/or the Contract Works. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.
7. APPROVAL REQUIRED
The acceptance of the LOA is not subject to the approval from the Company’s shareholders and/or any regulatory authorities.
8. DIRECTORS' AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S INTERESTS
The Contract Works is regarded as recurrent related party transactions of a revenue or trading nature (“RRPT”) pursuant to Main Market Listing Requirements of Bursa Malaysia Securities Berhad of which mandate to enter into such RRPT had been obtained from its shareholders at the Extraordinary General Meeting of the Company held on 21 January 2025.
Mr. Lim Aik Hoe, Mr. Lim Aik Kiat and Mr. Lim Aik Fu (collectively, the “Interested Major Shareholders”) are major shareholders of the Company, holding a 70.517% indirect interest in EHB through their direct shareholding in EXSIM Hospitality Holdings Sdn. Bhd., pursuant to Section 8 of the Companies Act 2016.
Mr. Lim Aik Hoe and Mr. Lim Aik Kiat are also directors of EWSB. The Interested Major Shareholders hold 95% indirect interest in EWSB via their direct shareholding in EXSIM Development Sdn. Bhd., pursuant to Section 8 of the Companies Act 2016.
Save as disclosed above, none of the Directors, major shareholders of the Company, and/or persons connected to them has any interest, direct or indirect, in the Contract Works.
9. STATEMENT BY THE BOARD OF DIRECTORS
The Board, after having considered all aspects of the LOA and the Contract Works, is of the opinion that the LOA and the Contract Works are within the ordinary course of business of EHB and the acceptance of the LOA is in the best interest of the Company.
This announcement is dated 21 February 2025.