Quick take: White knight rides to Comcorp’s rescue, shares soar 23%

KUALA LUMPUR: Shares in Comintel Corp Bhd rose 23% on Thursday after it found a white knight to revive the company.

The engineering services company jumped 23.53%, or four sen to 21 sen with 5.5 million shares traded.

Datuk Seri Subramaniam Pillai Sankaran Pillai, the executive director of rail contractor Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA), will emerge as the single largest shareholder of Comcorp under the latter's regularisation plan.

Then PN17 company said it will place out 171.12 million new shares to Subramaniam at 7.5 sen each to raise RM12.8mil.

The company has set aside RM3.5mil from the proceeds to purchase new machinery to undertake railway construction jobs.

As part of its regularisation plan, Comcorp will also dispose of its shareholdings in a number of companies it is currently holding for an aggregation cash consideration of RM1mil.

This involves selling its entire equity stake in Comintel Sdn Bhd, Green Waste Management Sdn Bhd and Comintel System Technologies Sdn Bhd, as well as selling its 80% equity interest in PT Intelcom Indonesia and paring its 50.60% stake in Comintel Green Technologies Sdn Bhd.

Comcorp will also undergo a share capital reduction, which will entail a reduction of its issued share capital to RM5.85mil from RM95.75mil.

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