General Announcement for PLC
23/06/2022OTHERS SEREMBAN ENGINEERING BERHAD ("SEB" or "COMPANY") LETTERS OF AWARD FROM DUTCH LADY MILK INDUSTRIES BERHAD FOR: - CIVIL, STRUCTURAL AND ARCHITECTUAL WORKS (CO3 PROJECT) - MECHANICAL, ELECTRICAL AND PLUMBING WORKS (C04 PROJECT)
| SEREMBAN ENGINEERING BERHAD |
| Type | Announcement | ||||||||||||||||||||||||||||||||
| Subject | OTHERS |
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| Description | SEREMBAN ENGINEERING BERHAD ("SEB" or "COMPANY") LETTERS OF AWARD FROM DUTCH LADY MILK INDUSTRIES BERHAD FOR:
- CIVIL, STRUCTURAL AND ARCHITECTUAL WORKS (CO3 PROJECT)
- MECHANICAL, ELECTRICAL AND PLUMBING WORKS (C04 PROJECT) |
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1.INTRODUCTION
The Board of Directors of SEB (The “Board”) is pleased to announce that the Company had received letters of award dated 31 January 2022 and 15 March 2022 respectively (“LOA”) from Dutch Lady Milk Industries Berhad to undertake the CO3 Project and CO4 Project for a new manufacturing plant of approximately 13 hectares located at Bandar Enstek Industrial Estate in Nilai, State of Negeri Sembilan, Malaysia for the total contract sum of RM172,600,000.00 (“the Contract”).
2.VALUE AND DURATION OF THE CONTRACT
The total value of the Contract amounting to RM172,600,000.00 and the duration thereof are summarised as follows:
The Contract is subject to renewal upon expiry and the approval of the relevant authorities, if applicable.
3.RISK FACTORS
The risks factors affecting the Contract comprise mainly the normal operational and execution risks which the Group would 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 duration of the Contract.
The Contract will be funded via internally generated funds and external bank borrowings.
5.DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
Save and except for the below-mentioned, none of the Directors and Major Shareholders of the Company and persons connected to them has any interest, direct or indirect, in the Contract.
As part of group synergy and in furtherance of the renewal mandate for the recurrent related party transaction of a revenue or trading in nature (“RRPT Mandate”), SEB had awarded the Major Shareholder, MIE Industrial Sdn Bhd, a total contract sum amounting to RM115,000,000.00 for the following contract works:
The RRPT Mandate was sought and approved by the shareholders of the Company at the previous annual general meeting held on 16 December 2021.
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 and its subsidiaries.
The announcement is dated 23 June 2022. |
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Announcement Info
| Company Name | SEREMBAN ENGINEERING BERHAD |
| Stock Name | SEB |
| Date Announced | 23 Jun 2022 |
| Category | General Announcement for PLC |
| Reference Number | GA1-23062022-00054 |