Serba Dinamik’s SPAC to buy 1st asset

The move is part of the firm’s ICT expansion which currently contributes 10% to the revenue


SERBA Dinamik Holdings Bhd expects its special purpose acquisition company (SPAC) to finalise acquisition of its first asset focusing on the data centres and Internet technology sectors in November 2021.

Serba Dinamik group MD and CEO Datuk Dr Mohd Karim Abdullah (picture) said it is part of its ICT expansion which currently contributes 10% to the revenue.

“These are the technologies that will make the group relevant now and in the future. It adds value to what we are doing in operation and maintenance (O&M) and engineering, procurement, construction and commissioning (EPCC),” he told The Malaysian Reserve.

Serba Dinamik through its wholly owned subsidiary, Serba Dinamik Group Bhd (SDGB), took a stake in a SPAC named Data Knights Acquisition Corp to invest in data centres and the Internet technology sector.

UK-based Data Knight listed on Nasdaq on May 7, 2021, with SDGB investing RM24 million in the SPAC, which plans to raise up to US$150 million (RM621 million) in capital from the exercise.

Mohd Karim said Data Knight will support Serba Dinamik in absorbing the capital expenditure required to build the data centres and innovation hub in Abu Dhabi, United Arab Emirates.

“This will help improve the free cashflow position of Serba Dinamik. Though Data Knights raised only US$150 million at the moment, it can still go for further fundraising exercises moving forward. We believe the funds liquidity in the US is much larger,” he added.

The SPAC is led by CEO and chairman Barry Anderson, who is also the CEO of Present D’Lloyd Technologies and CFO Firdauz Mokhtar, who serves as a senior VP of Special Project at SDGB.

On the outlook for 2021, he said management is compelled to perform in this volatile situation.

“We can see better visibility after the recent upswing of the Covid-19 pandemic in the Asia region.

“The value of our current bids in progress is some RM15 billion while the orderbook as of the first quarter of 2021 is at RM18.9 billion,” he said.

In March, Serba Dinamik’s subsidiaries and associates bagged five contracts in India and Indonesia with a combined value of RM408.8 million.

The contracts were secured via its wholly owned subsidiaries, SDIT International Ltd, 75%-owned subsidiary PT Serba Dinamik Indonesia, Serba Dinamik Sdn Bhd and a 49%-owned associate Serba2C India Pte Ltd.

Two of the contracts are O&M contracts, while another three are in the ICT segment. The contracts’ tenure is from Feb 5, 2021, until Feb 14, 2036.

Serba Dinamik recorded another profitable year in the financial year ended 2020 (FY20) with a 27% yearon-year (YoY) rise in annual net profit to RM631.75 million as revenue rose to RM6.01 billion versus RM4.53 billion in FY19.

For the fourth quarter ended Dec 31, 2020 (4Q20), its net profit rose 44.1% YoY to RM202.1 million as revenue rose 33.4% YoY to RM1.82 billion due to strong activities from its O&M and EPCC segment.

“O&M contributed 82.5% of revenue in 4Q20 with an increase of RM338 million or 29.2% against 4Q19. The increase was due to higher activities from our maintenance, repair and overhaul activity in the Middle East region such as Oman and Malaysia,” the company had noted in its bourse filing.