PETALING JAYA: George Kent (Malaysia) Bhd has commenced arbitration proceedings on Malaysian Resources Corp Bhd (MRCB) following a difference of opinion with MRCB in the shareholders agreement dated June 8, 2015 entered into between both parties for the LRT3 project.
Under the terms of the shareholders’ agreement, George Kent and MRCB agreed to form a 50:50 joint venture (JV) company, namely MRCB George Kent Sdn Bhd to tender for, undertake and complete the LRT3 project from Bandar Utama to Johan Setia.
George Kent and MRCB have a difference of opinion in the interpretation of certain provisions of the shareholders agreement with regards to the options for securing of the financing requirements for the JV company.
George Kent does not expect any material financial impact by reason of the commencement of the arbitration proceeding other than legal cost to be incurred. No material operational impact is expected arising from the arbitration.
As at current date, the issued and paid up share capital of the JV company stood at RM10 million.