EGM withdrawn, Serba Dinamik’s shareholders buy shares

by RAHIMI YUNUS / pic credit:

SERBA Dinamik Holdings Bhd non-independent non-ED Datuk Abdul Kadier Sahib (picture), also the second-largest shareholder, has withdrawn his motion for an EGM to be convened for the proposed removal of its external auditors KPMG PLT and appointment of new auditors.

In an exchange filing yesterday, the oil and gas services company stated it received a notice from Abdul Kadier dated June 2, requesting the special notice to be withdrawn.

Abdul Kadier was seeking to remove KPMG — which has flagged concerns on billions of ringgits of sales transactions (RM3.2 billion), trade receivables balances (RM751 million) and materials on-site balances (RM569 million) — and replace it with BDO PLT.

The withdrawal came as Abdul Kadier bought five million new shares on the same day from the open market amid a huge sell-off, to bring his ownership to 16%.

His buying came about as the Retirement Fund Inc (KWAP) ceased being a substantial shareholder yesterday after disposing of 26 million shares. KWAP was previously the fifth-largest shareholder with a 5% stake.

Serba Dinamik’s largest shareholder and group MD Datuk Mohd Abdul Karim Abdullah bought five million shares from the open market on Tuesday, taking his stake to 27% direct stake, according to bourse filings.

The fall in Serba Dinamik’s valuation in the past week has hit Abdul Karim’s portfolio value which has lost RM831 million in the past six days following the alleged auditing irregularities. He was estimated to have suffered RM784.7 million in wealth loss as Serba Dinamik shares nosedived 49% between May 28 and yesterday.

Serba Dinamik ended 1.2% lower yesterday at 82 sen, 57% below its RM1.93 three-month high price as the company lost over RM4 billion in market value.

Abdul Karim also holds 37% stake in Sarawak Consolidated Industries Bhd (SCIB) and 32% in KPower Bhd. The decline in share prices of these two companies in the past six days has shaved off his wealth by RM32.7 and RM13.2 million respectively.

KPower shares closed 3.94% lower at RM1.22 yesterday, while SCIB declined 2% to 98 sen. KPower and SCIB have fallen by 6.9% and 15.5% in the past six days respectively.

Serba Dinamik’s board aims to appoint an independent firm to commence a special independent review to assess the veracity and accuracy of the matters pertaining to the statutory audit raised by the external auditors.

Institutional shareholders Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) have raised concerns over the latest development at Serba Dinamik, according to newswires.

EPF, Serba Dinamik’s largest institutional shareholder, is engaging with the investee company as it seeks to safeguard members’ interest. PNB reportedly stated it sees no merit for Serba Dinamik to remove KPMG.