George Kent Accepts MRCB’s Cash Offer of RM53 Million for a 50% Ownership in the LRT3 Joint Venture

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George Kent (Malaysia) Bhd said that it has accepted Malaysian Resources Corp Bhd’s (MRCB) cash offer of RM53 million for a 50% share in MRCB George Kent Sdn Bhd (MRCBGK).

MRCBGK is a 50:50 joint venture (JV) between MRCB and George Kent that is responsible for the turnkey construction of the RM16.6 billion Light Rail Transit Line 3 (LRT3) project.

On Sept 14, MRCB made an offer to purchase George Kent’s interest or to sell its own 50% investment to George Kent.

This came after an arbitration panel in May found in favour of MRCB in a disagreement over the JV company’s funding choices. MRCB received a final payout of RM2.3 million on Monday.

Goerge Kent stated in a filing with Bursa Malaysia on Tuesday that it intends to use the RM53 million proceeds from the sale of its 50% stake as operating capital.

While the sale results in an RM4.24 million loss on disposal, George Kent stated that it has already recovered its initial investment cost and benefited from share of profit contribution.

It stated that the acquisition will absolve it of any future liabilities arising from the RM11.4 billion LRT3 project. According to the company, the project is currently 60% complete.

George Kent’s shares maintained their steady price of 67.5 sen, valuing the group at RM377.41 million. MRCB’s shares fell half a sen or 1.28 percent to 38.5 sen, valuing the group at RM1.7 billion.

Published by  Zack Baharum

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