| Type | Announcement |
| Subject | OTHERS |
| Description |
LETTER OF AWARD |
The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that Harum Bidang Sdn Bhd, a subsidiary of KKB, has received a Supplementary Contract from CMS Infra Trading Sdn Bhd (“CMSIT”) for the Supply and Delivery of Concrete-Lined Mild Steel Pipes and Mechanical Couplings to JKR Central Unallocated Stores, Tanah Puteh, Kuching (On “As and When Required” basis).
The estimated value of supply is worth approximately RM46.7 million (Ringgit Malaysia Forty Six Million Seven Hundred Thousand Only).
DURATION OF CONTRACT
The supply and delivery will be based on issuance of Purchase Orders by CMSIT on a “As and When Required” basis. The expiry date for this Supplementary Contract is on 31 August 2020.
FINANCIAL EFFECTS
The Contract will have no effect on the Share Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the contract.
RISK FACTORS
Risk factors affecting the Contract include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions.
DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
Cahya Mata Sarawak Berhad (“CMSB”) is a major shareholder of KKB. CMSIT is a subsidiary of CMSB and accordingly, CMSB is deemed interested in the award. Datuk Syed Ahmad Alwee Alsree is a Director of KKB while Encik Syed Hizam Alsagoff is an alternate director to Datuk Syed Ahmad Alwee Alsree in KKB. Datuk Syed Ahmad Alwee Alsree is also a Director of CMSB and both Datuk Syed Ahmad Alwee Alsree and Encik Syed Hizam Alsagoff are the nominees of CMSB and persons connected with CMSB and accordingly, they are deemed interested in the award.
KKB has obtained the Shareholder Mandate at its Annual General Meeting held on 16 May 2018. Immediate announcement will be made to the Exchange when the actual value of the transaction exceeds the estimated value as disclosed in the circular to shareholders by 10% or more.
Save as aforesaid above, none of the Directors and/or major shareholders and/or persons connected with them has any interest, direct or indirect in the abovementioned contract.
DIRECTORS’ STATEMENT
The Board is of the opinion that the abovementioned contract is in the best interest of KKB and its Group.
This announcement is dated 20 December 2018.
| Company Name | KKB ENGINEERING BERHAD |
| Stock Name | KKB |
| Date Announced | 20 Dec 2018 |
| Category | General Announcement for PLC |
| Reference Number | GA1-20122018-00066 |
