KHSB enters MOA with Menteri Besar Selangor (Incorporated)

KUALA LUMPUR: Kumpulan Hartanah Selangor Bhd (KHSB) has entered into a Memorandum of Arrangement (MOA) with Menteri  Besar Selangor (Incorporated) (MBI) whereby MBI will provide KHSB a specific grant for the principal amount of RM115.101 million.

MBI is the penultimate holding company of KHSB. MBI shall distribute the grant on behalf of the State government in order to ease KHSB’s burden. The grant may include the transfer and/or alienation of State-owned lands at no cost to KHSB.

The grant shall not constitute a loan by MBI to KHSB and there shall be no repayment obligations on the part of KHSB.

In a filing to the Bursa Malaysia on Dec 30, KHSB said the distribution of the grant is expected to have a positive effect on the earnings of the group but the actual effect will depend on the timing of the distribution.