The Board of Directors of ENRA wishes to announce that ENRA Energy Solutions Sdn Bhd ("EES"), an indirect 70% owned subsidiary of ENRA, has on 21 April 2026 entered into a Memorandum of Understanding ("MOU") with Boustead Holdings Berhad ("BHB"), a Malaysian investment holding company wholly owned by Lembaga Tabung Angkatan Tentera.
The MOU with BHB reflects the parties' intention to jointly explore opportunities in maintenance, repair and overhaul services for naval propulsion and power generation systems, as well as lifecycle support for surface vessels operated by the Royal Malaysian Navy.
The parties will collaborate on targeted naval projects, including joint participation in tenders, sharing of technical expertise, and coordinated business development efforts. The collaboration will also explore the development of codification capabilities, including parts identification, standardisation, and logistics support frameworks.
The MOU shall come into effect on the date of the execution and shall remain in effect for a period of one (1) year and shall expire on 20 April 2027. Thereafter it may be extended for a further period upon mutual agreement between parties, unless either party terminates the MOU, or upon entry by the parties into a definitive agreement.
The MOU serves as a non-binding framework for collaboration and does not create financial obligations at this stage, with specific initiatives and the proposed investment to be formalised through a separate definitive agreement.
The risk factors involved in the MOU are expected to be minimal. In the event EES enters into a definitive agreement with BHB, the Board of Directors and Management will exercise due care in considering the associated risks and benefits.
The MOU is not expected to have any immediate material financial effect on the earnings, net assets, or gearing of ENRA Group for the financial year ending 31 March 2027. However, the collaboration is expected to contribute positively to ENRA Group's long-term strategic positioning in the maritime sector.
None of the Directors and/or major shareholders of the Company and/or persons connected to them have any interest, direct or indirect, in the MOU.
The Board of Directors, upon considering all the relevant aspects of the MOU, is of the opinion that entering the MOU is in the best interest of the Company.
Any key development in relation to the MOU will be announced as required.
This announcement is dated 21 April 2026.