Abdul Karim exits KPower, SCIB shares to trade from today

The chairman had disposed of 79m shares in a series of multiple business transactions between February 2021 and January 2022 


AFTER relinquishing his role as chairman, Datuk Mohd Abdul Karim Abdullah (picture) has ceased to be a substantial shareholder in construction and engineering solutions player KPower Bhd. 

According to KPower’s exchange filing to Bursa Malaysia on Monday, Abdul Karim had disposed of 79.05 million shares in a series of multiple business transactions that took place between February 2021 and January 2022, however, the filing did not indicate the value of his transactions. 

KPower had received notice of his cessation as a major shareholder on Jan 13. 

Previously, Abdul Karim had resigned as KPower’s non-independent non-executive chairman on Dec 14. 

On Nov 24, he had sold 4.61% or 25 million shares in KPower for about RM10.38 million to trim his stake down to 15.163% or 82.3 million shares. 

Abdul Karim, who is also the MD and CEO of Serba Dinamik Holdings Bhd, is currently facing a charge by the Securities Commission Malaysia in relation to the oil and gas service group’s submission of a false financial statement to Bursa Malaysia. 

The case will be heard on Jan 27. 

In a separate filing, KPower noted its deputy chairman and group MD Mustakim Mat Nun will assume the executive chairman’s position permanently. Ahmad Riza Mohd Saian was appointed as an independent director. 

Abdul Karim and Grand Deal Vision Sdn Bhd emerged as KPower’s majority shareholders in 2019, and he and the new management team successfully transformed KPower from a loss-making manufacturing business into a renewable energy (RE)-based concern and diversified further into the healthcare and logistics business segments. 

His exit from KPower leaves Abdul Karim with stakes in Serba Dinamik and Sarawak Consolidated Industries Bhd (SCIB). He holds a 24% stake in SCIB and the chairman’s role. 

Shares of SCIB, which were suspended on Nov 9, 2021, due to delay in filing its annual report, will resume trading today. 

The company is set to hold its AGM on Feb 20, 2022. SCIB group MD and CEO Rosland Othman, in a release on Monday, stated the group will now focus on creating value and optimising performance in the year ahead as it can give full attention to its expansion into Peninsular Malaysia, Sabah and Sarawak. 

Shares of Serba Dinamik have remained suspended since Oct 22 on failure to file its annual report and findings from the special audit undertaken to Bursa Malaysia. 

Serba Dinamik finally filed its 2021 annual report on Jan 6, 2022. 

KPower’s net profit declined 61.35% the its first quarter ended Sept 30, 2021 to RM3.15 million from RM8.15 million a year ago, dragged by the movement restrictions to curb the Covid-19 pandemic which disrupted the progress of its projects in Malaysia and Indonesia. 

Its exchange filing noted revenue for the quarter also dropped 23% to RM43.78 million from RM57.06 million previously, mainly as contribution from construction-related activities fell due to the previously mentioned restrictions, while its property development and investment segment recorded no revenue as development works halted during the Movement Control Order period. 

The construction and engineering solutions player had recently completed the disposal of its property in Liverpool, UK on July 5, 2021, (which) resulted in no revenue from the investment segment. 

Moving forward, KPower stated the past two years have proved that KPower can thrive under trying circumstances and will flourish when business and economic activities resume in full. 

The group noted that it is optimistic about its future financial performance as its group structure and the industry it operates in, together with the resources it has, will enable it to grow further. 

“We are continuously working on securing new projects and business opportunities including asset ownership-based investment, backed by the strong presence in the energy and utilities segment while simultaneously establishing synergy between all of our business operating segments,” its filing said. 

KPower remains committed to reinforce its footing in the RE segment by establishing itself as a onestop centre for RE solutions, serving the entire RE spectrum, including waste-to-energy and wind energy. 

KPower’s other major shareholders include Kenanga Investors Bhd with a 16.3% stake and Grand Deal Vision holding 8.52% stake. Mustakim holds some 34.4 million shares or 6.33% in KPower.