MRCB gets further extension in RM1.6bil KL Sports City deal

KUALA LUMPUR, Nov 3 -- The artistic sketch of Bukit Jalil National Sports Complex after the regenerating works, which will be known Kuala Lumpur Sports City upon completion in Dec 2020. --fotoBERNAMA COPYRIGHT © RESERVED 2015

KUALA LUMPUR: Malaysian Resources Corp Bhd’s (MRCB) 85%-owned indirect subsidiary Rukun Juang Sdn Bhd has requested and received a second extension to fulfill the conditions precedent in the RM1.63bil Kuala Lumpur Sports City deal.

The construction and property firm, which earlier this month was given a one-month extension to Jan 28, told Bursa Malaysia that the Youth and Sports Ministry had agreed to a further extension until Feb 10 to meet these conditions in the privatisation agreement signed in October.

Under the agreement, 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 Government will pay the company in both cash and kind - with three parcels of leasehold land nearby spanning 37.4ha as well as 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.