SOMETIMES nothing beats hearing from the horse’s mouth, for whatever is being expressed surely carries more weight than listening to what is being uttered by third parties.
After no longer able to bear share price erosion of KPower Bhd and Sarawak Consolidated Industries Bhd (SCIB), which have borne the brunt of him being their non-executive chairman and major shareholder, Serba Dinamik Holdings Bhd group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah broke his silence.
Essentially, the head honcho of the global integrated oil & gas (O&G) service provider stressed that he practices a policy of non-interference by allowing KPower and SCIB “to chart their own destiny”.
“I’m very much aware of how investors will interpret the link among the three companies, hence I wish to personally clear the air once and for all that I never meddle with their business direction and strategy” Abdul Karim told FocusM.
“Never have I imposed on both KPower and SCIB to be a rubber stamp of Serba Dinamik or to take any business that will not be beneficial to the company and investors. The respective management are capable to chart their own direction without my interference”.
Since May 25, when external auditor KPMG flagged accounting issues in the financials of Serba Dinamik, the share prices of KPower and SCIB have retreated almost 41% and 47% respectively.
Abdul Karim reiterated that the business affairs and management of both entities (KPower and SCIB) are independent of Serba Dinamik save for his presence as a shareholder and their chairman with non-executive function.
Likewise, there is hardly any over-lapping in business interest as Serba Dinamik’s core business revolves around the O&G industry while KPower now focuses on renewable energy and SCIB is very much focused on the construction sector.
He further noted that he is well-aware of his limits by never over-stepping his boundaries with regard to KPower and SCIB.
“My personal investment in KPower and SCIB is part of my initiatives to give entrepreneurs a stepping stone in realising their potentials. The current managements have been managing well and I’m only doing justice to my personal investment as well as that of other investors,” he rationalised.
“I may consider selling down my investment in both companies to the respective management and subsequently relinquish my role as the non-executive chairman if the companies can further thrive without being further misapprehended on their alleged link to Serba Dinnamik.”
Currently, Abdul Karim holds a 27.07%% stake in Serba Dinamik, KPower (32.36%) and SCIB (36.8%).
On Friday (June 18), KPower closed down 2 sen or 1.96% to RM1 with 16.55 million shares traded, thus valuing the company at RM452 mil while SCIB was up 1 sen or 1.3% to 78 sen with 10.81 million shares exchanged hands which gave the company a market capitalisation of RM383 mil. – June 21, 2021