KUALA LUMPUR – Malaysian Resources Corp Bhd received on Friday the final award on costs from the Asian International Arbitration Centre (AIAC) in its dispute against MRCB-George Kent (M) Sdn Bhd (MRCBGK).
The arbitrator awarded in its final award that George Kent (Malaysia) Bhd will pay MRCB RM2.08 million, as well as S$70,458.50 (about RM217,935), MRCB said in a filing with Bursa Malaysia today.
The shareholders’ agreement concerns MRCBGK, a 50:50 joint venture (JV) between the two listed companies, which is the project delivery partner for the RM11.4 billion Light Rail Transit 3 (LRT3) project linking Bandar Utama to Klang, Selangor.
The award to MRCB follows the AIAC arbitration’s findings that George Kent was found to have been in breach of the shareholders’ agreement with MRCB.
MRCB must now make an unconditional cash offer to buy all of George Kent shares in the JV company and unconditionally offer to sell all of its shares in the JV company to George Kent at the same price, according to past filings.
This is unless the two parties settle their dispute or if MRCB withdraws its notice concerning the shareholder agreement breach.
The arbitration followed a dispute over the options for securing financing requirements for the JV company, after which George Kent served the notice of arbitration to MRCB in August 2019.
George Kent and MRCB had entered into the shareholders’ agreement on June 8, 2015, to form the company. – The Vibes, September 27, 2021
