Compugates gets JV, private placement nod

PETALING JAYA: Compugates Holdings Bhd shareholders yesterday approved a proposed joint venture in a property project in Dengkil, Selangor, and a proposed private placement to raise RM13.5 million.

The approvals would help to initiate Compugates’ turnaround, said chief executive officer Goh Kheng Peow.

He said the project would unlock the value of the company’s 25.09ha plot in Dengkil, now renamed as CyberSouth.

Compugates posted a RM1.39 million net loss for the first quarter ended March on the back of RM4.65 million revenue.

In November last year, Compugates’ subsidiary Compugates Development, Mining Sdn Bhd and Jade Classic Sdn Bhd agreed to jointly develop the 25.09ha plot in phases over the next decade.

The initial plan was to build 500 houses, 1,100 Rumah Selangorku houses and three blocks of residential and commercial units.

The planned private placement is set to raise RM13.5 million.

Compugates plans to use RM2.95 million to repay bank borrowings and RM2.58 million to pay off trade creditors.

“We will use a portion of the RM5.68 million raised to further our gaharu trees business,” said Goh after the company’s shareholders meeting, here.

He expects the project to significantly boost the company’s growth once it kicks off.

“At the moment our revenue was still derived from the information technology (IT) distribution segment,” said Goh.

Compugates provides trading, marketing and distribution of imaging, information technology and communication-based products such as cellular phones, calculators and digital cameras.