SERBA Dinamik Holdings Bhd has again reiterated that there is no element of a related party interest in the undertaking of its Block 7 Investments LLC (Block 7) which was first announced on April 12 last year.
In denying a cover story in The Edge Weekly entitled “Serba Dinamik in the Eye of the Storm” (June 7-13), the global integrated oil & gas (O&G) service provider also clarified that Block 7 was incorporated in Abu Dhabi (United Arab Emirates/UAE) and not in the US as reported in the article.
Offering a chronology of event, the company said it was on April 12 last year that Serba Dinamik International Ltd (SDIL), its wholly-owned subsidiary, bagged a contract from Block 7 for the engineering, procurement and construction (EPC) of an innovation hub, academic campus, related facilities and information technology infrastructure in Abu Dhabi.
In order to strengthen Serba Dinamik’s expansion of its business into a strategic asset ownership model, Block 7’s ownership was transferred to EFIRE Capital Holdings Ltd (EFIRE) on March 2 this year.
EFIRE is owned by LIWA Investment Holding (LIWA) and SDIL with 51% and 49% ownership respectively.
Upon completion of the transfer, EFIRE and LIWA owned Block 7 with 99% and 1% shareholding respectively. Hence, SDIL is an indirect minority shareholder of Block 7 effective from March 2.
On March 31, Block 7 signed a long-term land lease agreement with ZonesCorp/Abu Dhabi Port which is one of the largest operators of purpose-built economic zones in the UAE and owned by the Abu Dhabi Government to develop the Innovation Hub Project in the Industrial City of Abu Dhabi (ICAD). The announcement was made by ZonesCorp on April 24.
“With the opportunity to participate in the project as an EPC contractor, SDIL was able to expand its EPC business segment,” justified Serba Dinamik in a Bursa Malaysia filing.
“Furthermore, with its participation as an equity shareholder, SDIL is also in a good position to provide facilities management services for the maintenance and upkeep of the project upon its completion and hence, benefit from the long-term stable income.”
Based on the above, Serba Dinamik confirmed that there is no element of related party interest as purported.
“The structure as described above was undertaken in the best interest of Serba Dinamik for long term shareholders’ value creation and earnings stability,” asserted the company.
The company further noted that it did not record any revenue for the EPC contract in 2020. “Currently, the project is at the stages of concept master planning design and securing approval from the relevant Abu Dhabi authorities,” added Serba Dinamik.
At 3pm, Serba Dianmik was down 2 sen or 3.2% to 60.5 sen with 57.72 million shares traded, thus valuing the company at RM2.25 bil. – June 21, 2021
