MRCB, Nusa Gapurna and PKNS settle suit over RM3 billion PJ Sentral project

(The Malaysian Insider) – Malaysian Resources Corp Bhd (MRCB), Nusa Gapurna Development Sdn Bhd (NGD) and PKNS Holdings Sdn Bhd have reached an out-of-court settlement over the ownership of the RM3 billion PJ Sentral mixed-development project, reports the Edge today.

MRCB said in a statement to Bursa Malaysia that it had signed a settlement agreement with NGD and PKNS Holdings.

In March, PKNS Holdings had filed an injunction to stop NGD and MRCB from completing their multi-million-ringgit merger plans, following MRCB’s proposed acquisition of 70% equity interest in PJ Sentral Development Sdn Bhd.

With today’s announcement, MRCB will “control and consolidate” PJ Setral’s future income.

In February, PKNS lost its suit against NGD and MRCB in relation to a breach of shareholders’ agreement over a stake in PJ Sentral Development Sdn Bhd.

PKNS had tried to prevent NGD from selling its 70% stake in PJ Sentral for nearly RM200 million. NGD also won its counter claim for PKNS to sell its 30% stake in PJ Sentral to MRCB.

Under the terms of today’s settlement, the Edge said MRCB signed a share sale agreement with PKNS to acquire its 30% stake in PJ Sentral for RM85 million.

MRCB said it would finance the purchase via internally generated funds and bank loans. The acquisition is expected to be finalised by the third quarter of this year.

Meanwhile, PKNS and PJ Sentral have also negotiated an agreement to grant development rights to PKNS for a building to be known as Tower 2 for RM91.11 million on a parcel of land held by PJ Sentral.

The project comprises of residential, retail, commercial and hotel components.