1. Introduction

Leform wishes to announce that LF Engineering Sdn Bhd (“LF Engineering”), a 60%-owned subsidiary company of Leform, had on 2 May 2023, accepted the Letter of Acceptance from Prebore Piling & Engineering Sdn Bhd (the “Main Contractor”) for the appointment as Subcontractor to supply and install guardrails for the construction and completion of civil works for Section 2 (SKVE Interchange to SAE Interchange) (“Subcontract”).

2. Information on Prebore Piling & Engineering Sdn Bhd

Prebore Piling & Engineering Sdn Bhd is a private limited company incorporated in Malaysia and having its registered address at Wisma IJM, Jalan Yong Shook Lin, 46050 Petaling Jaya, Selangor. Prebore Piling & Engineering Sdn Bhd is principally involved in piling, engineering and other construction works. Prebore Piling & Engineering Sdn Bhd was appointed as one of the contractors for the construction of Section 2 (SKVE Interchange to Shah Alam Expressway (SAE) Interchange).

3. Information on the Subcontract

The sum awarded to LF Engineering for the Subcontract is RM2,885,215.00. The commencement date is 1 July 2023 and is expected to be completed by 10 October 2023.

4. Financial Effects

The Subcontract is expected to contribute positively to the revenue, earnings and net assets of Leform and its subsidiaries for the financial year ending 31 December 2023.  

The Subcontract will not have any impact on the share capital and/or shareholding structure of Leform.

5. Risk Factors

The risk factors affecting the Subcontract include, but not limited to the execution risk, such as dependency on the schedule of the implementation and progress of other sub-contractors. Nonetheless, LF Engineering has, throughout the years, established its track record and expertise in undertaking such projects. As such, the Board of Directors believes that LF Engineering is able to mitigate the aforesaid risk factors.

6. Approval Required

The Subcontract is not subject to the approval of shareholders of Leform or any relevant authorities.

7. Directors’ and/or major shareholders’ interests

None of the Directors and/ or Major Shareholders of Leform and persons connected to them has any interest, direct or indirect, in the Subcontract. 

This announcement is dated 2 May 2023.