PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) will be taking over George Kent (M) Bhd’s 50% stake in the light rail transit 3 (LRT3) project joint venture (JV) for RM53mil.

       In a filing with Bursa Malaysia yesterday, MRCB said it had received George Kent’s unconditional acceptance to sell the five million ordinary shares held by George Kent Rail Sdn Bhd in MRCB-GK Sdn Bhd (MRCB-GK).

       MRCB-GK is a single-purpose company appointed by Prasarana Malaysia Bhd as the main contractor for the LRT3 project.

       It is worth noting that MRCB made the offer to George Kent on Sept 14. On the same day, MRCB also unconditionally offered to sell all five million ordinary shares held by MRCB Builders Sdn Bhd in MRCB-GK for RM53mil.

       “The acquisition will enable the company to have full control of MRCB-GK and is in line with the MRCB Group’s strategy to consolidate its core business in the engineering and construction sector,” MRCB said.

       MRCB said the JV company has completed more than 50% of the LRT3 project. It is expected to be operational by 2024.

       “Following the completion of the acquisition, MRCB-GK will become a wholly-owned subsidiary of MRCB Group, which will enable the group to fully reap the benefits from the LRT3 project,” it said.

       MRCB will be funding the RM53mil required for the acquisition through internally generated funds and bank borrowings. However, the breakdown of funding has not been determined at this juncture, it said.

       “The purchase consideration was derived based on the independent valuation of shares of MRCB-GK as conducted by the appointed audit firm on a discounted cashflow basis in accordance with the terms and conditions of the shareholders’ agreement executed on June 8, 2015.”