MRCB to receive RM1.32b as part EDL concession termination

(Bernama) – Malaysian Resources Corporation Bhd’s (MRCB) subsidiary, MRCB Lingkaran Selatan Sdn Bhd (MLSSB), has entered into a termination and settlement agreement with the government in relation to the concession termination of the Eastern Dispersal Link Expressway (EDL) in Johor and would be receiving RM1.32 billion as settlement.

MLSSB is a wholly-owned unit of MRCB Prasarana Sdn Bhd, which in turn is a wholly-owned subsidiary of MRCB.

MRCB in a filing to Bursa Malaysia today said the agreement would be backdated to Jan 1, 2018, this year.

MRCB said MLSSB was awarded the EDL Concession by the government under a 34-year concession agreement signed on June 26, 2007.

“Under the agreement, MLSSB was granted the right to design, construct, manage, operate and maintain the EDL, the administrative office and the ancillary facilities as well as to demand, collect and to retain toll from all vehicles liable to pay toll,” it said.

It said as part of the financing for the construction and development of the EDL, MLSSB’s wholly-owned unit, MRCB Southern Link Bhd, had on June 23, 2008, issued senior sukuk of RM845 million and junior sukuk of RM199 million.

It added that MSLB had also obtained a term loan facility of RM220 million for the construction and development of the EDL which was fully settled during the financial year ended Dec 31, 2017.