COMINTEL TO SELL UNIT FOR RM123.8m

KUALA LUMPUR: Comintel Corp Bhd is selling its electronic manufacturing services (EMS) unit, BCM Electronics Corp Sdn Bhd, for RM123.8 million to a company partly owned by its executive director Loh Hock Chiang.

Comintel, in a filing to Bursa Malaysia yesterday, said BCM Electronics provided turnkey manufacturing services and that the planned sale gave it an opportunity to unlock and realise the value of its investment in the unit.

With the sale to Aurelius Holdings Sdn Bhd, Comintel said it stood to realise a one-off gain of RM76.3 million.

“Given the highly competitive and specialised nature of the EMS industry, there is limited leverage to further increase the competitive edge of the Comcorp Group in EMS and EMS-related industries,” said Comintel.

BCM Electronics provides printed circuit board assembly, sub-system assembly and box build manufacturing services to original equipment manufacturers of telecommunication equipment, network equipment, tracking and monitoring devices and telemetric products.

Comintel inked a conditional share sale agreement (SSA) with Aurelius. Loh and BCM Electronics chief executive officer Lee Chong Yeow @ Lee Chong Yan each own equal parts of Aurelius.

As at July 31, Comintel Group owes RM11.5 million to BCM Electronics.

Following the sale, Comintel will see a net proceed of RM112.3 million.

Comintel plans to distribute most of the proceeds — tentatively priced at 45 sen per share or RM63 million total — as a special cash dividend to shareholders.

The remainder will be used for its green waste management and waste-to-energy businesses, as working capital and to defray estimated expenses from the proposed sale.

Given the highly competitive and specialised nature of the EMS industry, there is limited leverage to further increase the competitive edge of the Comcorp Group in EMS and EMS-related industries. COMINTEL SDN BHD