KUALA LUMPUR: Eden Inc Bhd said it last Friday received compensation amounting to RM16.71 million from the Malaysian government for the compulsory disposal of Eden’s 6.39ha land in Kuantan, Pahang for the proposed East Coast Rail Link (ECRL) project.

In a statement to Bursa Malaysia yesterday, Eden said the acquirer of the leasehold industrial land in Mukim Sungai Karang is Malaysia Rail Link Sdn Bhd (MRLSB), which has been appointed the asset and project owner of the ECRL. MRLSB is wholly-owned by the Minister of Finance Inc, Eden said.

“The compulsory disposal arose as a result of the receipt from the Land Administrator of the notice to take possession of the land under section 18 of the Land Acquisition Act 1960. The compulsory disposal has been completed. The compulsory disposal is expected to result in a gain on disposal of RM10.93 million,” Eden said.

Eden said it received the RM16.71 million compensation after accepting the government’s compensation awarded notice on Jan 7, 2020.

According to Eden, the land is charged to RHB Islamic Bank Bhd for an Ijarah loan facility granted to Eden.

“In view of the said land being currently charged to the bank, the full compensation amount is payable to the said bank, which is in line with the charge documents, where the proceeds are utilised to pare down the remaining balance of the Ijarah loan facility,” Eden said.

Eden, which is linked to Datuk Fakhri Yassin Mahiaddin, the son of Tan Sri Muhyiddin Yassin, has been actively traded since Muhyiddin was sworn in as the eighth prime minister on Sunday.

Yesterday, Eden closed two sen higher at 25 sen, which gives it a market capitalisation of RM100.84 million, after 48.66 million shares were done. The stock has gained about 39% since last Friday.

Eden’s latest reported net asset per share stood at 78 sen. The company’s website shows it is involved in food and beverage, tourism and property operations.