MRCB shares edge upward on disposal plan

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) shares moved 0.6 per cent higher following plans to dispose of Platinum Sentral to Quill Capita Trust (QCT) for RM750 million.

MRCB, which opened at RM1.64, rose one sen to RM1.65 at 11.30am.

Platinum Sentral, located within the prime KL Sentral integrated development, consists of five blocks of commercial buildings.

Concurrently, MRCB also inked agreements with CapitaLand RECEM Pte Ltd and Coast Capital Sdn Bhd, to buy 40 per cent and one per cent of their respective interest in Quill Capital Management for RM6 million.

Quill Capital Management is the management company of QCT.

MRCB also proposed to sell a 30 per cent stake in Duke Highway for RM228 million, AmResearch said in a note today.

"We believe MRCB could be on track to pare down its net debt by RM1.0 billion in the coming months.

"This puts the company on a solid platform to transform into a property-centric group with a stronger balance sheet," it noted.

AmResearch maintained its "buy" call on MRCB with an unchanged fair value of RM2.20 per share