KUALA LUMPUR: Coming out of midday break, Comintel Corp Bhd jumped 15 sen or 21.7% to 87 sen a share, its highest since June, on 4.1 million shares done.

Comintel had proposed a special dividend payout following the disposal of 100% equity interest in BCM Electronics Corp Sdn Bhd to Aurelius Holdings Sdn Bhd for RM123.8mil cash.

On Friday, Comintel announced that it had entered into a conditional share sale agreement with Aurelius in relation to the proposed disposal. 

According to the share sale agreement, a portion of the proceeds will be used to offset the RM11.5mil owing to BCM, bringing the net proceeds of the disposal to RM112.3mil.

A proposed special dividend of RM63mil or about 45 sen per share, which comprises 56% of the net proceeds, will be paid out to shareholders.

The remainder of the proceeds will go towards the development of Comcorp's green waste management and waste-to-energy businesses, working capital and payment of expenses in relation to the proposed disposal.

Electronics manufacturer BCM assembles printed circuit boards, sub-systems and provides box build manufacturing services to original equipment manufacturers (OEM) of electronic products.

"The Proposed Disposal provides an opportunity for the Company to unlock and realise the value of its investments in BCM Electronics," said Comintel.

The group also cited BCM's dependence on large-scale contracts related to overseas multinational OEM companies and the need for heavy capital investment in technology as reasons for the disposal. 

"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 the EMS and EMS-related industries," it said.