DRB-Hicom takes control of Dekad Kaliber

PETALING JAYA: DRB-Hicom Bhd has acquired a 51% equity interest in Dekad Kaliber Sdn Bhd (DKSB) from MRCB Engineering Sdn Bhd, a wholly-owned subsidiary of Malaysian Resources Corp Bhd (MRCB) for RM7 million cash.
DKSB is the only sub-contractor appointed by the unincorporated joint venture, Zelan Kiara Teratai, for the development of the integrated, custom, quarantine and security complex located at Bukit Kayu Hitam, Kedah (ICQS Complex).
“The proposed acquisition will enable DRB-Hicom Group to exercise more control over the development of the ICQS Complex,” the group told Bursa Malaysia in its filing on Friday, after entering into a share sale agreement with MRCB Engineering.
DRB-Hicom’s wholly-owned subsidiary Northern Gateway Infrastructure Sdn Bhd, was awarded a 28-year concession for the rights to design, finance, develop, construct, complete and lease the facilities and infrastructure, and to carry out the asset management services for the ICQS Complex.
The deal gives DRB-Hicom an effective equity interest of 100% in DKSB, as the remaining 49% stake is held by Hicom Builders Sdn Bhd.
The RM7 million consideration, which will be funded via internally generated funds, comprises RM3.65 million consideration for the acquisition and RM3.35 million as settlement of the outstanding advances owing from DKSB to the MRCB Group as at Dec 31, 2016.
In a separate filing, MRCB said the disposal would enable it to use its resources more effectively and focus on its core businesses namely property development and specialised infrastructure and environmental projects.