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BackNov 21, 2017
Type Announcement
Subject OTHERS
Description

LETTER OF ACCEPTANCE

The Board of Directors of Hock Seng Lee Berhad (“HSL”) is pleased to announce that HSL has on 20 November 2017 received the Letter of Acceptance from X-FAB Sarawak Sdn. Bhd. (“X-FAB”) for a building construction project in Kuching known as “The Construction and Completion of the Proposed Renovation and Extension to existing 3-story X-FAB Administration Building with Associated External Works on Part of Lot 1339, Block 12, Muara Tebas Land District, Sama Jaya Free Industrial Zone, Kuching Sarawak” (“the Project”) worth Ringgit Malaysia Fifty Six Million Five Hundred Ninety Eight Thousand and Eight Hundred Only (RM56,598,800.00), through open tender exercise.

X-FAB is the world's leading foundry group for analog/mixed-signal semiconductor applications, specialized in advanced analog and mixed-signal process technologies. It manufactures wafers for automotive, industrial, consumer, medical, and other applications in it six manufacturing sites in Germany, France, Malaysia and USA.  X-FAB Sarawak Sdn. Bhd. is 93.6% owned by X-FAB Silicon Foundaries N.V (source: X-FAB web site and company search result from SSM).

HSL’s success in this open tender exercise was mainly premised on its superior vibration control management, which is critical in this project as the on-going manufacturing activities involved high precision and has very low tolerance to any vibration of the environment. The scope of works for HSL includes pilling, building works (both new construction and renovation and refurbishment of existing buildings) and the associated mechanical and electrical works.

This is a fast track project with contract period of Nineteen (19) months and is expected to commence in December 2017. The Contract is expected to contribute positively to the earnings and net assets of HSL Group as the Project progresses during the contract period.   However, the transaction will not have any effect on the share capital and substantial shareholdings of HSL.

None of the directors and/or major shareholders of HSL or persons connected to them have any interest, direct or indirect, in the above contract.





Announcement Info

Company Name HOCK SENG LEE BERHAD
Stock Name HSL
Date Announced 21 Nov 2017
Category General Announcement for PLC
Reference Number GA1-21112017-00002