KUALA LUMPUR (July 22): As part of its regularisation plan, PN 17 company Comintel Corp Bhd (Comcorp) has roped in businessman Datuk Seri Dr S Subramaniam Pillai, who will be injecting his railway infrastructure business into the company.

Suubramaniam is the founder and executive director of Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA), a joint venture partner in the RM4.47 billion Klang Valley Double Track 2 (KVDT2) rehabilitation project.

In a bourse filing today, Comcorp said it will raise RM12.83 million by placing 171.12 million shares, representing 55% of its enlarged share capital, at 7.5 sen per share to Subramaniam.

In the meantime, Comcorp will undertake subcontract works in respect of the upgrading of railway infrastructure and system at KVDT2, for a contract sum of not less than RM132.36 million.

The job scope involves the manufacture, supply, installation and commissioning of point machines, as well as communication works and system enabling works.

“The contract period for the proposed acceptance of contract shall be for a period of three years from the date of issuance of the notice to proceed from DMIA,” Comcorp said.

Moving forward, Comcorp will cease its business relating to green waste management and conversion of waste-to-energy, and will focus on system integration and maintenance services as its core business, the filing said.

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 RM1 million, it added.

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 said the proposed disposal is expected to result in a loss of RM2.02 million but the proceeds raised will be utilised to finance the day-to-day operations of the company.

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

“The credit arising from the proposed share capital reduction will be utilised to set-off against the accumulated losses of the company,” the company said.

Comcorp shares closed unchanged at 17 sen, giving it a total market capitalisation of RM24 million.