EPF cuts stake in Serba Dinamik, directors force selling

This reduced the institutional investor’s shareholding in the O&G company to 4.99% at 185.1m shares


THE Employee Provident Fund (EPF) has ceased to be the substantial shareholder in Serba Dinamik Holdings Bhd following its disposal of 96 million shares in the open market last Friday (June 25).

This reduced EPF’s shareholding in the company to 4.99% at 185.08 million shares, Serba Dinamik noted in an exchange filing yesterday.

EPF cut its equity holdings in the oil and gas (O&G) company in early June after Serba Dinamik became embroiled in audit concerns raised by its external auditor KPMG PLT on over RM4 billion in transactions.

The institutional investor previously held some 10% equity and was the third-largest shareholder in the company along with Amanah Saham Nasional Bhd (6.15%) and Retirement Fund Inc (4.55%).

The fall in value of Serba Dinamik had in turn led the company’s group CEO Datuk Dr Mohd Abdul Karim Abdullah (picture) to force sell some 46.3 million shares at an average price of 34 sen per share for RM15.74 million on Monday (June 28), the company’s filing revealed.

The action has left him with 957.76 million shares, representing 25.8% equity interest in the company. Mohd Abdul Karim remains the largest shareholder in Serba Dinamik.

It was the same with Datuk Awang Daud Awang Putera who forced sell 26.95 million shares in total on Monday and yesterday at an average price of 33.67 sen a share, the company’s exchange filing yesterday stated.

On Monday, Bursa Malaysia Securities Bhd set a deadline of July 2 (Friday) for Serba Dinamik to appoint an independent reviewer, with Ernst & Young Consulting Sdn Bhd (EY) expected to be selected, to assess the veracity and accuracy of the matters highlighted by its former external auditor, KPMG.

In a filing to Bursa Malaysia Tuesday, Serba Dinamik stated that EY informed the board it can act as the independent reviewer, provided, as agreed from the onset, it can perform independently and objectively for the benefit of all stakeholders. This includes EY having full and unfettered cooperation from KPMG in the form of access and information for the purpose of analysing the transactions and concerns highlighted.

Serba Dinamik also needs to make board appointments after four of its independent and non-EDs resigned in disagreement over the legal action taken against KPMG.

Serba Dinamik shares ended one sen higher at 33 sen in heavy trading yesterday.