KUALA LUMPUR: The Youth and Sports Ministry has given Malaysian Resources Corp Bhd’s (MRCB) 85%-owned indirect subsidiary Rukun Juang Sdn Bhd another month to fulfill the conditions precedent in the RM1.63bil Kuala Lumpur Sports City deal.
The construction and property firm told Bursa Malaysia that the ministry had agreed to Rukun Juang’s request for an extension from Dec 28, 2015 until Jan 28, 2016 to meet the conditions precedent as set out in the privatisation agreement signed in October.
Under the deal, Rukun Juang will upgrade the National Sports Complex in Bukit Jalil and turn the area into a sports hub, festuring, among others, a sports-focused retail mall, a convention centre, a sports museum and youth hostel.
The company will be paid by the Government with three parcels of leasehold land nearby totalling 37.4ha plus RM31.88mil in cash.
Among the conditions precedent is getting MRCB’s shareholders approval, which was fulfilled last month.
Other conditions precedent are to submit to the Government’s satisfaction that Rukun Juang has a paid-up capital of no less than RM5mil, neither Rukun Juang nor any of its directors has secured the Government’s approval through illegal means, all information and documents given to the Government are correct, and none of Rukun Juang directors has been an undischarged bankrupt or committed any offence under the Companies Act 1965.
Under the privatisation agreement, the Government may extend the conditions precedent period provided that such extension does not exceed one month after the expiry period.
If the conditions precedent are not fulfilled within the initial period or any extended period, the privatisation agreement will be null and void and neither party will have any claims against the other.
MRCB shares closed 1 sen higher at RM1.29 on Friday.
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