KUALA LUMPUR – George Kent Bhd has accepted a cash offer from the Malaysian Resources Corporation Bhd (MRCB) to dispose of five million ordinary shares in MRCB George Kent Sdn Bhd (MRCBGK) for RM53 million.
It said MRCBGK is a 50:50 joint venture (JV) company between MRCB and George Kent, and is the turnkey contractor for the RM16.6 billion Light Rail Transit Line 3 (LRT3) project.
“The cash proceeds of RM53 million will be utilised as working capital for the George Kent Group by March 31, 2022,” it said in a filing with Bursa Malaysia today.
It said the transaction would free the group from any exposure to future liabilities in respect of the contract for the LRT3 project valued at RM11.4 billion.
“Taking into consideration the factors set out above, the board is of the view that it is in the best interest of George Kent to accept the cash offer to sell its GK Rail’s 50% equity interest in MRCBGK,” it added.
MRCBGK was incorporated as a special purpose vehicle with a single business to undertake the LRT3 project with a finite life-ending of February 2, 2024.
To date, approximately 60% of the contract has been completed.
On September 14, MRCB offered to buy George Kent’s stake or sell its own 50% stake to George Kent. – Bernama, September 28, 2021
