MRCB shareholders advised to favour BJSP purchase

PETALING JAYA: Malaysian Resources Corp Bhd’s (MRCB) shareholders have been advised to vote in favour of the RM1.58bil cash purchase of the remaining 80% interest in Bukit Jalil Sentral Property Sdn Bhd (BJSP) from the Employees Provident Fund (EPF).

In a circular filed with Bursa Malaysia yesterday, Kenanga Investment Bank Bhd (Kenanga IB) said the proposed acquisition “is fair, reasonable and not detrimental to the interests of the non-interested shareholders of MRCB”.

Kenanga IB said the purchase consideration of RM1.58bil represents a slight premium of RM5.1mil or 0.32% over the valuation for the sale shares of RM1.57bil as assessed by the independent valuer, KPMG.

Nonetheless, it is of the view that, notwithstanding the slight premium, the proposed deal is “fair” and “reasonable”.

In September, MRCB said the buyout came as it re-evaluated the approved mixed development plan from November 2020.

At that time, the group said discussions with the EPF on revising the original masterplan were unsuccessful, leading MRCB to proceed with the buyout.

BJSP had been established to undertake the 76.14-acre Bukit Jalil Sentral project, which has a projected gross development value of RM21bil.

In the filing then, MRCB said the land can serve “as an enlarged hub to the Malaysian Research Accelerator for Technology and Innovation (MRANTI) Park.

Located 1.9km from the MRANTI Park in Bukit Jalil, the land is a “prime venue for the establishment of hyperscale data centres, offering critical infrastructure for large-scale cloud computing and data storage”.

The group also noted that “with the escalating demand for such facilities, data centre operators are actively exploring nearby alternative land, thereby significantly enhancing interest in the land”.

Nonetheless, MRCB added it would conduct feasibility and environmental studies before embarking on the development of any data centres on the land.

BJSP owns three parcels of land with the first being a 97,720 sq m-recreational park. The other two are empty land, with an area of 37,320 sq m and 173,800 sq m respectively.