KUALA LUMPUR (Feb 16): Malaysian Resources Corp Bhd (MRCB) has confirmed that it was appointed by Menteri Besar Selangor Inc (MBI) to undertake the demolition works of the Shah Alam Stadium at a provisional contract value of RM35 million.
In a filing with Bursa Malaysia on Friday, MRCB said its wholly-owned Lembaran Prospek Sdn Bhd had on Feb 6, 2024 signed a demolition contract with MBI for the job.
This comes after the Selangor Menteri Besar Datuk Seri Amirudin Shari said earlier this month that the Shah Alam Stadium is expected to be fully demolished by mid-2025.
In a separate statement, Amirudin said the demolition would begin with a ringed installation of hoarding walls, followed by the dismantling of existing structures.
In July 2022, MRCB was appointed by the Selangor government to redevelop the Shah Alam Stadium after 15 other companies participated in a selection process for the public-private partnership development. At that time, Amirudin said MRCB was selected after taking into account its financial position, as well as its experience in repairing the Bukit Jalil National Stadium in 2017.
But according to MRCB's statement on Friday, the group is still negotiating with MBI to finalise the terms of the definitive agreement for the redevelopment, which is different from the demolition contract.
"The company will make the appropriate and timely announcements to Bursa Malaysia Securities Bhd as and when the terms of the agreement have been finalised in accordance with Bursa Securities’ Corporate Disclosure Policies," it said.
It was previously reported that the stadium is expected to be completed in 2026, with a development cost not exceeding RM787 million, to be borne by MRCB. The developer will also be granted a land swap for the development.
Plans to tear down the Shah Alam Stadium and to replace it with a state-of-the-art sports complex were proposed as early as 2022 as the stadium was plagued with issues, including problems with its roofs, piping system and the field.
The proposed redevelopment was expected to take at least two years, to be completed in line with the construction of the Light Rail Transit 3 (LRT3) line nearby.
MRCB shares closed up half a sen or 0.82% at 61.5 sen on Friday, giving it a market capitalisation of RM2.73 billion.
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