MRCB receives RM1.33bil govt compensation for ending EDL highway

Slowing exports and tepid inflation have raised expectations that policy makers will need to consider adding to May

KUALA LUMPUR (Bernama): Malaysian Resources Corporation Bhd (MRCB) has received RM1.325bil from the government as a settlement for ending the concession for the Eastern Dispersal Link Expressway (EDL).

Chief Financial Officer Ann Wan Tee, in a statement on Sunday (Nov 25), 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.

The money was received by MRCB via its wholly-owned subsidiary, MRCB Lingkaran Selatan Sdn Bhd,

“We would like to thank the government for the speedy conclusion of negotiations and the payment of the RM1.325bil 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.

The company's net gearing is expected to fall even more to 0.22x after 80% of MRCB's 30.45 hectares of land in Bukit Jalil is disposed to the Employees Provident Fund, which is expected to be completed by the end of the year. - Bernama