MRCB Gets Minority Shareholders' Approval On Resolutions
Date：2015/02/13
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KUALA LUMPUR -- The minority shareholders of Malaysian Resources Corp Bhd (MRCB) have approved the proposed disposal of Platinum Sentral and to subscribe for 700,000 new Kwasa Development Sdn Bhd ((KDSB)(2)) shares.
Group Chief Operating Officer Mohd Imran Tan Sri Salim said the two resolutions were approved with the requisite majority at the extraordinary general meeting (EGM) here Thursday.
The company said 99.9 per cent of the minority shareholders approved the resolutions.
"The shareholders were very pleased and quite agreeable to the ideas, as in the long term we are looking into possibilites of how we can increase our dividend.
"The moves to dispose of and acquire new shares are to build income so that dividend can be given back to the shareholders," he told reporters after the Extraordinary General Meeting (EGM).
Imran explained that shareholders agreed to acquire KDSB (2) with an investment of RM816 million which is a good piece of land to buy as it gives a long-term income stream to the company.
It was reported that MRCB has guaranteed that KDSB would have a minimum profit after tax of RM150 million at the end of the five years and up to RM2 billion by end of the fifteenth year.
The group's disposal of Platinum Sentral was to realign its investment assets of MRCB as it focuses on property development which is one of its core businesses.
The proposed disposal would enable MRCB to unlock value and realise its investment in Platinum Sentral.
As part of the corporate exercise, MRCB will acquire a 41 per cent stake in Quill Capita Management Sdn Bhd from Capitaland RECM Pte Ltd and Coast Capital Sdn Bhd for RM5.88 million, MRCB said in its circular to shareholders.
Meanwhile Chief Financial Officer Ann Wan Tee said despite the depreciation of the ringgit and the Goods and Services Tax (GST) to be implemented this year, the company's business will not be affected by the economic constraints due to its niche development.
Ann said MRCB is not really worried as its property locations and the type of strategy that they deploy to get their client tenants are not for the mass market.