MRCB & EKOVEST in JV for River of Life Project

• Ekovest–MRCB JV has received a Letter of Intent (LOI) from the Government for the River of Life Project. 
• It indicates the intention of the Government to obtain the services of the Ekovest-MRCB JV as the Project Delivery Partner (PDP) for the Project, an Entry Point Project (EPP) identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area (NKEA) under the Economic Transformation Programme (ETP).
• The entire project, which largely involves the clean up and development of the Klang river, is estimated to be worth around RM8bn-RM10bn, with Phase1 estimated at RM1bn-RM2bn. The JV to take the lead in undertaking Phase 1 coupled with partial involvement for the remaining phases.
• The project will definitely enhance MRCB’s future orderbook and earnings. Target price RM2.58.

IJMLAND & MRCB signed MoU for merger

• IJMLAND & MRCB signed MoU for merger in a RM7.5bill ($2.42bill) deal. No necessity, better off on its own. 
• Rumor of govt involvement. Expect MRCB’s participation in the 3,400-acre RRIM land to give it pricing power of RM300psf (Sg Buloh town development). 
• However, both companies have no township development track record. 
• 30/Dec/10 - announcement: aborted merger.  
• IJMLAND should weather the failed merger quite well. They have a RM5.5bill Light Waterfront project spread over 210 acres. Also in a 50:50 JV with KEURO to develop the 2,500-acre Canal City project near Kota Kemuning worth an estimated RM6.3bill.