KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB), via its wholly-owned subsidiary, MRCB Lingkaran Selatan Sdn Bhd, has received RM1.325 billion from the government, being the settlement sum for the concession termination of the Eastern Dispersal Link Expressway (EDL).
Chief Financial Officer Ann Wan Tee, in a statement today, said the payment was a significant event as it marked the end of the non-core asset rationalisation programme in connection with MRCB’s corporate transformation.
“We would like to thank the government for the speedy conclusion of negotiations and the payment of RM1.325 billion settlement sum, which considerably strengthens the company’s balance sheet.”
Ann said the sum received on Nov 23 will immediately reduce MRCB’s net gearing from 0.71x to 0.46x.
Net gearing is expected to fall significantly to 0.22x after the completion of 80% disposal of MRCB’s 30.45-ha of land in Bukit Jalil to the Employees Provident Fund, which is expected to be completed by the end of the year. — Bernama