1. INTRODUCTION

The Board of Directors of SEB (The “Board”) wishes to announce that the Company had accepted additional banking facilities amounting to RM80,000,000.00 (the “Facilities” or “Blanket Contract Financing Facilities”) granted by United Overseas Bank (Malaysia) Bhd, as per the terms and conditions as stipulated in the letters of offer dated 1 March 2022 and 6 May 2022 respectively.

2. PURPOSE OF THE FACILITIES

The Company will utilize the Blanket Contract Financing Facilities for the purchase of materials, issuance of performance bond, warranty bond, guarantees in relation to the following contracts awarded by Dutch Lady Milk Industries Berhad and working capital requirement:

      a) Civil, structural and architectural works for a contract sum amounting to RM108,800,000.00; and

      b) Mechanical, electrical and plumbing works for a contract sum amounting to RM63,800,000.00,

for the new manufacturing plant located at Bandar Enstek Industrial Estate in Nilai, State of Negeri Sembilan, Malaysia (“DL Contract”).

3. EFFECT OF THE FACILITIES

The Facilities will not have any effect on the total issued share capital and shareholdings of the substantial shareholders of the Company.

The Facilities are not expected to have significant effect on the earnings, consolidated net assets and consolidated gearing of the Company and its subsidiaries for the financial year ending 30 June 2022.

4. RISK IN RELATION TO THE FACILITIES

The Board does not envisage any specific risk associated with the acceptance of the Facilities, apart from the finance costs.

5. INTEREST OF DIRECTORS, SUSBSTANTIAL SHAREHOLDERS AND/OR PERSONS CONNECTED

None of the Directors and/or substantial shareholders of the Company and persons connected to them have any interest, direct or indirect, in the Facilities.

6. DIRECTORS’ STATEMENT

After considering all aspects of the Facilities including but not limited to the rationale and financial effects, under the present circumstances, the Board is of the opinion that the Facilities which are necessary to facilitate DL Contact and working capital requirements, are in the best interest of the Company and on normal commercial terms which are fair and reasonable to the Company.

This announcement is dated 23 June 2022.