Mohd Abdul Karim makes takeover offer for Kumpulan Powernet at RM1 per share

His move to table the cash offer came after raising his stake in the company to 36.49% following the purchase of 12.3m shares


KUMPULAN Powernet Bhd (KPB) has received a mandatory general takeover offer (MGO) of RM1 per share from its substantial shareholder and deputy chairman Datuk Dr Mohd Abdul Karim Abdullah (picture).

Mohd Abdul Karim’s move to table the cash offer came after raising his stake in the company to 36.49% following the purchase of 12.25 million shares or 16.09% stake for RM12.25 million or RM1 per share.

Together with persons acting in concert (PAC), Mohd Abdul Karim now holds a 46.81% stake at KPB.

The PACs are Grand Deal Vision Sdn Bhd, which is jointly owned by KPB’s MD Mustakim Mat Nun and Sarah Azreen Abdul Samat with 10.18% stake.

The offer price is at a premium of 8% to KPB’s Tuesday close. The counter closed seven sen or 7.61% higher to 99 sen yesterday, giving it a market capitalisation of 75.4 million.

KPB share price has risen 160.53% year-to-date, gaining RM46.45 million market capitalisation.

In an exchange filing yesterday, KAF Investment Bank Bhd noted the offerers intend to keep KPB listed on Bursa Malaysia.

KPB made a profit of RM2.3 million in the fourth quarter ended June 30, 2019 (4Q19) against a net loss of RM1.4 million it experienced in the same quarter last year.

The quarterly revenue surged 835.16% year-on-year (YoY) to RM11.97 million from RM1.28 million in 4Q18.

For the whole year, KPB recorded a RM476,000 net profit against a RM5 million net loss in the financial year 2018.

Its yearly revenue more than doubled to RM13.24 million from RM5.73 million in the previous year.

KPB said the profit was contributed by the sale of units under the property division and the effect of management restructuring exercise.

The jump in revenue was mainly due to the contribution from its property project in Sentul, Kuala Lumpur.

Mohd Abdul Karim emerged as a substantial shareholder of the group after acquiring the 20.04% stake in June.

It was his second major purchase, after acquiring 19.35 million shares or 22.53% stake in Sarawak Consolidated Industries Bhd (SCIB) in May.

He then triggered a MGO for SCIB in August after raising his stake in the property and construction company to 42.84% after acquiring a 20.31% stake from undisclosed parties for RM1.10.

KAF Investment, acting as an independent advisor for the offer, stated the offer made is “not fair and not reasonable”.

Mohd Abdul Karim, in 1993, formed Serba Dinamik Sdn Bhd and assumed the position of CEO.