CEO Morning Brief

Comintel Bags RM52.8 Mil Construction Project in Damansara Perdana

Publish date: Tue, 26 Jul 2022, 08:44 AM
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TheEdge CEO Morning Brief
Comintel bags RM52.8 mil construction project in Damansara Perdana

KUALA LUMPUR (July 25): Comintel Corp Bhd has secured a RM52.825 million contract for the construction, piling and completion of basement works for a mixed development project in Damansara Perdana, Mukim Sungai Buloh, Selangor.

In a bourse filing, Comintel said its wholly-owned subsidiary Total Package Work Sdn Bhd had received the letter of award for the project from Mightyprop Sdn Bhd, and that the mixed project mainly comprised a 48-storey apartment block with four levels of basement parking, 27 units of business space, and one substation.

The job, to begin on Aug 1 and be completed within nine months, is expected to provide the company with an additional income stream over the next two financial years.

Shares of Comintel have been suspended from trading since May 31, 2021 — when they were last traded at 9 sen a share, giving the company a market capitalisation of RM13 million — after Bursa Malaysia rejected the company's application for more time to submit its plan to regularise its Practice Note 17 condition. The PN17 condition was triggered in March 2019, after its shareholders’ equity fell to under 25% of its issued share capital.

Following that, Comintel was to be delisted on June 2, 2021, but the company appealed against the delisting and asked for Bursa to reconsider its application. Bursa allowed the appeal and granted Comintel another six months to submit the plan, which it did in January this year.

Under the plan, which was later revised in June, businessman Datuk Tan Kak Seng, the sole director and shareholder of JT Conglomerate Sdn Bhd, would take up 56.49% in Comintel — as opposed to 72.47% previously — by subscribing for 145 million new shares for RM11.6 million, and another 71.06 million Comintel shares from a group of vendors. JTC will also take up 70 million redeemable convertible preference shares in Comintel at 8 sen apiece.

A group of other investors will be taking up 97.5 million new Comintel shares — namely Datuk Seri Godwin Tan Pei Poh and Tan Wee Dher, who will each subscribe to 18.19 million shares; Yankong Stainless Sdn Bhd (18.74 million); Tan Chyi Boon (15.3 million); Chow Hing Yaung (13.54 million) and Fong Yik Hon (13.54 million).

Aside from the fundraising of RM25 million, Comintel’s regularisation plan also entails a share capital reduction of RM90.96 million to eliminate its accumulated loss, as well as the acceptance of a construction contract worth RM188.77 million from Mightyprop Sdn Bhd.

In May, Mightyprop awarded Comintel RM42.83 million worth of construction works.

Source: TheEdge - 26 Jul 2022

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