MRCB exits River of Life project

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) is exiting the RM4 billion River of Life project by selling its 40% stake in the project delivery partner Ekovest-MRCB JV Sdn Bhd (JV1) and Ekovest-MRCB Construction Sdn Bhd (JV2), to Ekovest Bhd for RM8.5 million.
MRCB in its filing with Bursa Malaysia said the move is part of the group’s macro strategy to monetise non-core assets and focus its resources on the core businesses of property development, specialised infrastructure and environment projects, in which MRCB is in the driving seat.
It said MRCB, as the minority shareholder in JV1 and JV2 is not expected to benefit from further development in the River of Life project. MRCB said the disposal is expected to relieve the group from having to increase its investment in the proposed developments that may be pursued by the joint venture.
“Accordingly, the group’s board of directors is of the view that the proposed disposal would enable MRCB to better utilise and focus its resources on its core businesses,” MRCB said.
Meanwhile, Ekovest in its filing with Bursa Malaysia said the acquisition of the balance 40% is to obtain total control over JV1 and JV2 , to put it in a better position to manage the risks and enjoy full rewards from operations of the companies.
Ekovest said it will secure the full discharge and release of the corporate guarantee issued by MRCB in favour of Kuwait Finance House (M) Bhd for the financing obtained by JV2.