1. Introduction

The Board of BHIC is pleased to announce that on 8 June 2021, the Company has entered into Memorandum of Understanding (“MoU”) with Airbus Defence and Space.

1. Information on Airbus Defence and Space

Airbus Defence and Space is one of the world’s leading space companies and among the top 10 global defence enterprises, based in Spain. Its core businesses include Military Aircraft, Space Systems, Connected Intelligence and Unmanned Aerial Systems. Airbus Defence and Space is exploring the opportunity to expand its local industrial presence to cover the military fixed wing MRO solutions.

1. Details of the MoU

1. Objectives

The purpose of the MoU is to explore the industrial capabilities of BHIC to perform maintenance, repair and overhaul (“MRO”) activities for military fixed wing aircraft to support Malaysian customer’s needs.

1. Salient terms

The salient terms of the MoU are as follows:

a.         Scope of collaboration

i.       Exploring the industrial capabilities of BHIC to perform MRO activities in relation to the fixed wing military aircraft.

ii.       Upon positive result, BHIC and Airbus Defence and Space will explore potential future collaboration in the field of maintenance to satisfy Malaysian customer’s needs. Such potential collaboration will be defined in a different agreement.

b.         Duration of MoU

The MoU shall terminate upon the first to occur of the following events:-

a)   By either party giving termination notice and the notice shall become effective 30 days thereafter.

b)   On the signing and enter into force a potential Agreement in which the type of business collaboration is defined and agreed in coherence with the purpose.

4.         Financial Effects of the MoU

The MoU is expected not to have any material effect of the earnings of BHIC Group for the financial year ending 31 December 2021.

5.         Directors’ and Major Shareholders’ Interest

None of the Directors or major shareholders of BHIC or any persons connected to them has any interest, direct or indirect, in the MoU.

6.         Statement by Directors

The Board of Directors of BHIC is of the opinion that the signing of the MoU is in the best interest of the Company.

7.         Approvals of Shareholders and Relevant Government Authorities

The MoU is not subject to the approval of the shareholders of the Company and any relevant government authorities.

This announcement is dated 8 June 2021.