MRCB rises in active trade on news of disposing EDL to govt by year end

KUALA LUMPUR (May 22): Shares of Malaysian Resources Corp Bhd (MRCB) rose 1.38% in active trade this morning after the company said yesterday it is hopeful to pare down its debts with the disposal of the Eastern Dispersal Link (EDL) to the government, expected to be by end of this year.

As at 10.15am, it rose one sen to 73.5 sen with 15.87 million shares done, higher than its 200 day average volume of 12.5 million.

Yesterday the company said it remains hopeful that it can complete its disposal of the EDL to the Malaysian government by the end of this year.

MRCB executive director Mohd Imran Mohamad Salim said the company will work with the new government to finalise the formula of the mutual termination agreement.

According to Imran, although it is too early to price in the exact value it may gain on the disposal, MRCB is hopeful that "at the minimum", it will be able to pay off all its debts on the EDL.

It is hoped that this would lower the group's net gearing ratio to 0.2 times by the end of this year from 0.53 times currently. — theedgemarkets.com

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