1. Introduction

Leform wishes to announce that LF Engineering Sdn Bhd (“LF Engineering”), a 60%-owned subsidiary company of Leform, had on 29 May 2023, accepted the Letter of Acceptance from IJMC-KEB Joint Venture (the “Subcontract”) for the appointment as Subcontractor to supply and install guardrails for Section 7 (Part 1 of 2) Assam Jawa Interchange to Tanjung Karang Interchange (the “Project”).

2. Information on IJMC-KEB Joint Venture

IJMC-KEB Joint Venture is an unincorporated joint venture formed between IJM Construction Sdn Bhd and WCE Holdings Berhad and having its registered address at Wisma IJM, Jalan Yong Shook Lin, 46050 Petaling Jaya, Selangor. IJMC-KEB Joint Venture is principally involved in engineering, procurement and construction works for the construction of the West Coast Expressway project.  

3. Information on the Subcontract

The sum awarded to LF Engineering for the Subcontract is RM6,249,835.00. The commencement date is 30 June 2023 and is expected to be completed by 30 June 2024.

4. Financial Effects

The Subcontract is expected to contribute positively to the revenue, earnings and net assets of Leform and its subsidiaries (“Leform Group”) for the financial year ending 31 December 2023 and 31 December 2024.  

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 Project 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 29 May 2023.