KUALA LUMPUR (Dec 19): Malaysian Resources Corp Bhd (KL:MRCB) has confirmed it has withdrawn from a Berjaya-led consortium which is bidding for the multi-billion-ringgit Kuala Lumpur-Singapore high-speed rail (HSR) project.
In a filing, MRCB said the group issued a notice of termination to consortium partner Berjaya Rail Sdn Bhd to terminate the teaming agreement for the submission of a non-binding conceptual proposal to MyHSR Corporation Sdn Bhd in relation to the project.
The statement came after Berjaya Group announced MRCB’s decision to exit the consortium on Wednesday. In a statement, Berjaya cited MRCB's withdrawal as a reason to “pursue other strategic opportunities.”
“We remain steadfast in our mission to deliver a world-class HSR system that will transform regional connectivity and economic development for Malaysia and to help the nation's successful transition towards green mobility in the form of the high-speed rail," said Berjaya Corp Bhd (KL:BJCORP) founder and adviser Tan Sri Vincent Tan.
With MRCB’s departure, the consortium comprises Berjaya Land Bhd’s (KL:BJLAND) 70%-owned Berjaya Rail Sdn Bhd, government-owned Keretapi Tanah Melayu Bhd, IJM Corp Bhd (KL:IJM) and technical partners Deutsche Bahn, Hitachi Rail and Hyundai Rotem.
The remaining 30% of Berjaya Rail is owned by Johor princess Tunku Tun Aminah Sultan Ibrahim, the only daughter of Malaysia’s King, Sultan Ibrahim. According to Berjaya Corp’s latest annual report, Tun Aminah is also chairman of Berjaya Rail.
The New Straits Times on Wednesday quoted Transport Minister Anthony Loke as saying that the Cabinet is set to make a policy decision on the project by end-December or early January next year, prior to restarting talks with Singapore.
The news has pulled MRCB's shares to a four-month low of 49 sen on Thursday, after it fell as much as 2.5 sen or 4.85%.
At the closing bell, the stock pared some losses to close at 49.5 sen, still down by two sen or 3.88%. At 49.5 sen, the stock was valued at RM2.21 billion. MRCB currently trades at a 15.4 times trailing price-earnings (P/E) ratio.
Shares in Berjaya Land, meanwhile, ended one sen or 3.17% higher at 32.5 sen, valuing the company at RM1.63 billion.