MRCB

Nusa Gapurna Development Sdn Bhd has scored a victory over PKNS Holdings Sdn Bhd after the High Court dismissed the latter’s injunction stopping the sale of PJ Sentral to MRCB.

Nusa Gapurna and PKNS are partners in PJ Sentral Development Sdn Bhd (PJSD), which is seen as key for the entry of Nusa Gapurna’s parent into MRCB.

The dismissal with cost comes weeks after PKNS withdrew an injunction it sought against MRCB on the PJ Sentral sale.

Although Nusa Gapurna, which has a 70 per cent stake in PJSD, may have won the battle, the war is hardly over as both parties’ powerful stakeholders are likely to hold their ground.

PKNS is controlled by the Selangor government, while MRCB, which is responsible for the successful development of KL Sentral, is partly owned by the EPF.

Nusa Gapurna is majority-controlled by Datuk Mohamad Salim Fateh Din while EPF is the minority stakeholder.

 In June 2013, MRCB shareholders voted to keep its offer of RM729 million for Nusa Gapurna, including its stake in PJSD. The deal will raise the KL Sentral developer’s landbank for future development, as well as give Nusa Gapurna’s parent, Gapurna Sdn Bhd, a foothold in MRCB.

Sources close to PKNS, owner of the balance 30 per cent PJSD stake, said it will file an application in the Court of Appeal for an injunction on August 6 2013, as the High Court also allowed for a temporary order until the Court of Appeal looks into the matter.

Nusa Gapurna cannot for the time being sell its 70 per cent stake in PJ Sentral to MRCB because of the temporary order, and pending PKNS filing an application in the Court of Appeal for an injunction.

PKNS wants to buy out Nusa Gapurna's interest in the RM3 billion PJ Sentral, the privately-held company's prized asset.

Based on the commercial value of the merger and acquisition deal between Nusa Gapurna and MRCB, any party intending to aquire the PJ Sentral assets will have to pay above market rates.

As it is, MRCB is already paying a premium for PJ Sentral's Lot 12. Past filings to the stock exchange show Lot 12 of the leasehold PJ Sentral spanning 4ha carries a book value of RM617 per sq ft.

Under the merger agreement, MRCB is paying RM662.30 per sq ft, or RM199 million in total.