Date : 14 August 2019

MATERIAL LITIGATION Receipt of Notice of Arbitration against Malaysian Resources Corporation Berhad

MALAYSIAN RESOURCES CORPORATION BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
Receipt of Notice of Arbitration against Malaysian Resources Corporation Berhad

Referring to our announcement on 13 August 2019 in relation to the commencement of arbitration proceedings with the receipt of a copy of the Notice of Arbitration and Application for Emergency Arbitrator dated 13 August 2019 respectively, with regard to the Shareholders’ Agreement dated 8 June 2015 between MRCB and George Kent (Malaysia) Berhad (“GKM”).

 

The followings are the details of the arbitration:

  1. MRCB and GKM had on 8 June 2015 executed a Shareholders’ Agreement for the purpose of forming a joint venture company, namely MRCB George Kent Sdn Bhd (“JV Co”) on a 50%:50% basis, to tender, undertake and complete the Light Rail Transit Line 3 from Bandar Utama to Johan Setia (“the LRT 3 Project”);
  2. Prasarana Malaysia Berhad had on 4 September 2015 appointed the JV Co as the Project Delivery Partner (“PDP”) for the LRT 3 Project. Further to the Government’s decision to change the structure of the LRT 3 Project to a fixed price contract, the JV Co and Prasarana had on 25 January 2019 executed a revised contract for the LRT 3 Project.
  3. MRCB and GKM have a difference of opinion in the interpretation of certain provisions of Shareholders’ Agreement in relation to the options for securing financing for the JV Co, that leads GKM to refer the matter to arbitration.
  4. The arbitration proceedings is not expected to have any material financial and operational impact to MRCB.
  5. None of the directors or substantial shareholders of MRCB or persons connected to them has any interest, direct or indirect, in the aforesaid arbitration proceedings.
  6. Further announcement on the material development of the arbitration proceedings will be made to Bursa Malaysia Securities Berhad from time to time.





Announcement Info

Company Name MALAYSIAN RESOURCES CORPORATION BERHAD
Stock Name MRCB
Date Announced 14 Aug 2019
Category General Announcement for PLC
Reference Number GA1-14082019-00058