Karim had already sold some of his warrants earlier this month before disposing the remaining 55.9 million warrants yesterday and subsequently used the proceeds to acquire mother shares in Serba Dinamik.
Karim said the disposal was purely a business decision, as the company has a full order book and many plans for the future.
The transaction price is not known but it has increased Karim’s stake in the company to 21.225%.
The announcement on the transaction followed a statement from Bursa Malaysia yesterday that it would be suspending Serba Dinamik’s trading from 2.30pm until further notice.
“The suspension is effected pursuant to paragraph 16.02(1)(c) of the Main Market Listing Requirements in the interest of maintaining an orderly and fair market in the trading of Serba Dinamik’s securities. Accordingly, all structured warrants relating to Serba Dinamik will also be suspended at the same time,” Bursa Malaysia said.
It also issued an order for Serba Dinamik to reveal findings of the special independent review by Ernst & Young Consulting Sdn Bhd (EY) which was meant to address auditing issues flagged by its former external auditor KPMG Ltd.
The deadline for this has currently been set for Oct 26.
Meanwhile, one of Serba Dinamik’s newly-elected independent non-executive directors Johan Mohamed Ishak said the company’s priorities have been revised and right now, the welfare of stakeholders and employees must be looked after.
“Directors, independent ED’s and the audit committee need to be dynamic in looking into this, as well as other aspects of the firm. The ongoing business of the company has more importance than the audit issues themselves,” he said.
He added that Serba Dinamik has been actively securing contracts.
The company announced in August that through its Malaysian and Indonesian subsidiaries, it had secured 15 operations and maintenance (O&M), engineering, procurement, construction, and commissioning (EPCC) contracts.
It also had secured a contract from Hydro Village Private Ltd for a hydropower project in Nepal as well as seven other local contracts that have not been disclosed yet, amounting to over RM286.3 million.
“We have also bagged an EPCC contract via our wholly-owned subsidiary, Serba Dinamik International Ltd, involving the 57.3-megawatt (MW) Myagdi Khola Hydropower project in Nepal’s Gandaki Province, alongside other contracts from Gas Malaysia Distribution Sdn Bhd,” the company said.
While the auditing issues may have slowed down its business this year, Serba Dinamik has certainly not taken it lying down and is determined to get things back on track to greater success.