The group will likely focus on developing new opportunities in the domestic and regional railway space under the 12MP
By TMR / TMR FILE PIX
GEORGE Kent (M) Bhd is looking forward to exploring new growth opportunities following the completion of the disposal of its entire 50% equity interest in MRCB George Kent Sdn Bhd (MRCBGK) to Malaysian Resources Corp Bhd (MRCB) on Oct 13, 2021.
Following the disposal, the group will focus on developing new opportunities in the domestic and regional railway space under the 12th Malaysia Plan’s (12MP) policy enabler of enhancing connectivity and transport infrastructure, it said in a statement yesterday.
This allows George Kent to leverage on its expertise as a rail systems specialist in railway projects.
“George Kent’s track record of successful execution and timely delivery of the Light Rail Transit Ampang Line Extension
(LRT2) project coupled with the experience gained from the LRT3 project augurs well for the group to expand its role in the rail network infrastructure,” it noted.
The disposal, for a cash consideration of RM53 million, provided an opportunity for the group to monetise its investment in MRCBGK, which has zero cost of investment.
The group had already recovered its original cost of investment in December 2017 upon receipt of a cash dividend of RM5 million declared by MRCBGK.
In addition, George Kent had benefited from equity gains of RM57.2 million as at June 30, 2021, which were credited to the group’s retained earnings.
MRCBGK, a joint venture company between MRCB and George Kent, is a special purpose vehicle incorporated on Sept 17, 2015, to execute the LRT3 project which has a finite life for completion by end of 2024.
Currently, approximately 60% of the work has been completed.
“George Kent is proud that it had provided the expertise by seconding, initially, senior staff for the systems works for the LRT3 project to MRCBGK,” said chairman Tan Sri Tan Kay Hock.
He added that the group is also in a good position to strengthen its thriving water meter business by exploring opportunities in the water infrastructure projects in view of the acceleration of the adoption of integrated water resources management by the government under the 12MP.
“As digital technologies are rapidly reshaping industries, the group is also looking to create a platform for strategic investments into companies with digital technology such as Internet of Things and artificial intelligence that will serve as an extension of our smart metering development, in the areas of urban solutions and sustainability, as well as emerging technology.
“The platform will provide the group with access to new areas of growth opportunities. We believe exciting times are ahead for George Kent,” he added.