Comintel falls into PN 17

PETALING JAYA: Comintel Corp Bhd slipped into the Practice Note 17 (PN 17) status after it underwent a major disposal exercise which left it without a business.
The company said in a filing with the stock exchange that Bursa Securities does not consider it a cash company and instead is an affected issuer with a PN17 status.
Comintel completed the disposal of its 100% stake in BCM Electronics Corporation Sdn Bhd to Aurelius Holdings Sdn Bhd for RM123.8 million, which triggered Paragraph 8.03A(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd.
BCM Electronics provides printed circuit board assembly, sub-system assembly and box build manufacturing services to original equipment manufacturers (OEM) of telecommunication equipment, network equipment, tracking and monitoring devices, power solutions and telemetric products.
Comintel is required to submit a regularisation plan to the regulator within 12 month, failing which will face suspension and delisting.
The company noted that it is taking the necessary actions to develop and expand the waste-to-energy and green waste management business in order to regularise its condition.
Comintel had expected that its maiden waste-to-energy 2MW plant in Kuang to be fully commissioned and revenue generating in the fourth quarter of the financial year ending Jan 31, 2018.
Despite that, its shareholders and potential investors are reminded that there is no assurance that the company will be successful in developing and growing these segments and/or venture into other viable businesses.
Its share price gained 0.6% to close at 81 sen, with some 989,300 shares changing hands.