Malaysian Resources Corp Bhd (MRCB) obtained a final decision on costs from the Asian International Arbitration Centre (AIAC) on Friday. The AIAC mediated the MRCB-George Kent (M) Bhd (MRCBGK) shareholder agreement dispute dated June 8, 2015.
The arbitrator determined that George Kent (Malaysia) Bhd must pay MRCB RM2.08 million plus S$70,458.50 (about RM217,935) in the final award on costs, MRCB said in a filing with Bursa Malaysia on Monday.
The shareholders agreement covers MRCBGK, a 50:50 joint venture (JV) between the two listed firms that serves as the project delivery partner for the RM11.4 billion Light Rail Transit 3 (LRT 3) project between Bandar Utama and Klang, Selangor.
The award to MRCB followed the AIAC arbitration’s determination that George Kent violated the shareholders’ agreement with MRCB.
According to previous filings, MRCB must now make an unconditional cash offer to purchase all of George Kent’s interests in the JV business and an unconditional cash offer to sell all of its shares in the JV company to George Kent at the same price.
This is until the two parties resolve their differences or MRCB withdraws its notice on the breach of the shareholder agreement.
The arbitration was triggered by a disagreement about the funding alternatives for the JV business, for which George Kent served MRCB with a notice of arbitration in August 2019.
On June 8, 2015, George Kent and MRCB agreed into a shareholders agreement to create the JV firm.
At 3.01pm, MRCB’s shares were up 0.5 sen or 1.3 percent to 39 sen, valuing the company at RM1.72 billion. George Kent shares remained steady at 67.5 sen, giving the group a market capitalization of RM374.62 million.
Published by Zack Baharum