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OTHERS GDB HOLDINGS BERHAD ("GDB" OR THE "COMPANY") - EXECUTION OF A LETTER OF INTENT BETWEEN SUNHILL VENTURES SDN BHD AND GRAND DYNAMIC BUILDERS SDN BHD, A WHOLLY OWNED SUBSIDIARY OF THE COMPANY

GDB HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
GDB HOLDINGS BERHAD ("GDB" OR THE "COMPANY")
- EXECUTION OF A LETTER OF INTENT BETWEEN SUNHILL VENTURES SDN BHD AND GRAND DYNAMIC BUILDERS SDN BHD, A WHOLLY OWNED SUBSIDIARY OF THE COMPANY

1. INTRODUCTION

 

The Board of Directors of GDB (“Board” or “the Company”) wishes to announce that its wholly-owned subsidiary, Grand Dynamic Builders Sdn Bhd (“GDBSB”) had on 7 November 2019 executed a Letter of Intent (“LOI”) dated 6 November 2019, with Sunhill Ventures Sdn Bhd (“SVSB”), a wholly-owned subsidiary of Hap Seng Consolidated Berhad with the mutual intention to enter into a definitive Letter of Award (“LOA”) relating to a main building works for the proposed development of a 5-Star 22-storey hotel on Lot 017512533, Jalan Haji Saman, Kota Kinabalu, Sabah (the “Contract”).

 

2. DETAIL AND PURPOSE OF THE LOI

 

The LOI is entered into between SVSB and GDBSB (the “Parties”) to facilitate GDBSB to commence its pre-construction planning, procurement, and operations mobilisation towards meeting the scheduled contractual commencement on 2 January 2020.

The provisional contract value stated in the LOI is RM213,300,906.11 where the actual awarded contract value is subject to finalisation of Bills of Quantities for the Contract.

The Contract is for a construction duration of 22.5 months with scheduled completion by 16 November 2021.

The Parties shall enter into a formal LOA for the Contract upon the finalisation of Bills of Quantities and awarded contract value.

 

3. RISK FACTORS

 

There are no foreseeable significant risks other than operational risk associated with the Contract during the contract period. 

 

4.  FINANCIAL EFFECTS

 

Barring any unforeseen circumstances, the Contract is expected to contribute positively towards the future earnings of GDB for the duration of the Contract and will not have any effect on the share capital and substantial shareholders’ shareholdings of GDB.

GDB intends to fund the Contract via internally generated funds.

 

5.  DIRECTORS’ AND SUBSTANTIAL SHAREHOLEDRS’ INTEREST

 

None of the Directors and/or substantial shareholders of GDB and/or persons connected with them has any interest, direct or indirect, in the Contract.

 

6.  DIRECTORS’ STATEMENT

 

The Board, after due consideration, is of the opinion that the Contract is in the best interest of the Company. The Contract is being entered into in the ordinary course of business and is not subject to the approval of shareholders.

 

The Company will make a further announcement upon the execution of the LOA.

 

This announcement is dated 7 November 2019. 






Announcement Info

Company Name GDB HOLDINGS BERHAD
Stock Name GDB
Date Announced 07 Nov 2019
Category General Announcement for PLC
Reference Number GA1-07112019-00017




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