MRCB to commence talks with government on EDL termination

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) has been invited by the government to commence negotiation on the terms of the mutual termination agreement of the concession for the Eastern Dispersal Link (EDL) highway in Johor.
MRCB said in a filing with Bursa Malaysia that it had received the letter from the Ministry of Works dated Dec 22, 2017, on behalf of the government.
"MRCB will make the necessary announcement once the terms of the mutual termination have been finalised," it said.
MRCB had planned to dispose of the EDL highway following the government's decision to abolish toll collection on the highway from 2018. The announcement was made by Prime Minister Datuk Seri Najib Abdul Razak during the tabling of Budget 2018.
MRCB considers the EDL concession a non-core asset and has been looking to dispose of it to relieve a debt burden, which makes up about 36% of its total debt.
EDL is first full private sector funded highway that runs on a 34-year concession. It was awarded to MRCB in 2007.
Its shares were unchanged at RM1.08 on some 2.46 million shares done.